DataCenters.buzz, January 2025

Table of Contents

• DataCenter Economics & Investments

• Energy & Sustainability

• Geopolitics, Global & Sovereigns

• Hyperscalers & Mag 7+

• Infrastructure, Security & Technology

• Quantum-readiness, Hybrid & Co-Location

• DataCenter Workforce & Talent

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DataCenter Economics & Investments

Blackstone Holds Firm On Data Center Investments Despite DeepSeek Model Turmoil - Blackstone said on its massive investments in data centers would not be undermined by the low-cost artificial intelligence models from China's DeepSeek, as the need for physical infrastructure was still vital for AI. The alternative asset manager, which has $80 billion worth of leased data centers, said its strategy for the segment was grounded in a "very prudent approach" and touted its partnerships with "some of the biggest companies in the world". (Reuters)

Earlier news:

Cloud Adoption Plus Ai Will Contribute Trillions Of Dollars To Global GDP - The cloud’s contribution to global GDP is projected to surpass $12 trillion in the next six years according to a trio of new studies.

KKR Sees $250B Spent Annually From Data Center Boom - Soaring demand for data centers to support artificial intelligence and cloud-computing will boost global spending in the sector to $250 billion a year, according to KKR. The U.S. is the biggest developer of data centers. That infrastructure consumes about 16 to 18 gigawatts of power, compared with about 6 gigawatts each in Europe and Asia, Waldemar Szlezak, KKR’s global head of digital infrastructure, said in an interview. For comparison, 1 gigawatt is enough to supply 850,000+ average U.S. households. (The Middle Market)

Amazon Doubles Down on Nuclear Energy With Deal for Small Reactors - The cloud computing giant signed a deal to buy electricity generated by small modular reactors to power its data centers. This follows a similar announcement by Google. Amazon is leading a $500 million funding round for X-Energy Reactor, a company that develops small modular nuclear reactors and fuel. (DataCenter Knowledge)

Energy & Sustainability

As California AI Data Centers Grow, So Does Dirty Energy - (OpEd) Data center builders in California are using a shortcut in the state’s power plant regulations to construct facilities that use enormous amounts of energy with limited public input. With artificial intelligence pushing energy demands ever higher, a business group representing tech companies last year lobbied the state Legislature to expand the Small Power Plant Exemption, which is administered by the California Energy Commission, from 100 megawatts to 150 megawatts a day. Though the effort failed, the quest for more energy to power data centers is intensifying. (Capital & Main)

Earlier news:

'Unprecedented' Energy Demand From Data Centers Poses Big Challenges For Virginia, Commission Says - Data centers in Virginia are causing a surge in energy demand that will be very challenging to accommodate in the coming decades, according to a new state report. The Virginia Joint Legislative Audit and Review Commission has been studying data center impacts over the past year as directed by the General Assembly. Virginia is a global hub for data centers. At least 70% of the world's internet traffic runs through Northern Virginia alone.

Powering AI Data Centers: Government and Industry Leaders Scramble to Develop Energy Infrastructure to Meet Growing Demand - In September 2024, government officials and private industry leaders announced that Three Mile Island, the Pennsylvania power plant that was the site of the nation’s most severe commercial nuclear accident, will be reopened to provide electricity aimed at offsetting the use by artificial intelligence (AI) and cloud computing data centers. On September 12, 2024, faced with the growing disparity between power supply and demand, the White House convened representatives from hyperscalers (tech companies that provide cloud computing services to businesses and organizations and have their own AI programs), major AI companies, data center operators, and utility companies to discuss ways to further US leadership in AI while meeting clean energy, permitting, and workforce objectives. (DLA Piper)

Amazon Prefers Renewables in Asia as Nuclear Still Elusive - Amazon sticks with renewables to power data centers in Asia, while others like Microsoft explore nuclear options in the US. “We’re going where we can procure today, and that’s renewables” in the region, said Ken Haig, APAC regional head of energy and environmental policy at Amazon Web Services. “Is it possible to procure nuclear power in this part of the world? Not yet.” (DataCenter Knowledge)

Geopolitics, Global & Sovereigns

Special Compute Zones Will Drive Sovereign Cloud Infrastructure in the UK - The UK currently occupies an enviable position in the AI arms race. World-class research institutions produce leading AI talent, and a developed financial sector provides the capital and expertise needed to scale. The result is a slate of top-tier homegrown AI labs, as well as a series of US big tech firms choosing to set up their European arms in London. The UK has laid the foundations, but now it needs to pave the way for future success. At the core of the country’s strategy must be developing a sovereign cloud infrastructure that pries British startups away from the vice-like grip of dominant hyperscalers like AWS, Google Cloud Platform, and Microsoft Azure. (Data Center Dynamics)

Earlier news:

Nvidia Pledges Ai Collaboration With Thailand Amid Data Center Ecosystem Hurdles - Nvidia plans to collaborate with the Thai government to establish a world-class AI infrastructure, though questions remain about Thailand's ability to fully capitalize on its strengths in developing a significant presence in the AI data center ecosystem. According to Barron's and the Bangkok Post, Nvidia CEO Jensen Huang met with Thai Prime Minister Paetongtarn Shinawatra on December 3, resulting in both parties agreeing to deepen AI cooperation.

Saudi Arabia Launches $100 Billion AI Initiative to Lead in Global Tech - Saudi Arabia has announced a 100 billion USD initiative aimed at establishing itself as a major player in artificial intelligence, data analytics, and advanced technology. The program, known as Project Transcendence, marks a significant push by the Kingdom to develop a robust AI ecosystem that can rival leading tech hubs, including neighbouring United Arab Emirates and other global technology centers. Project Transcendence is expected to channel investments into critical areas needed to create a thriving AI industry. (CIO)

First IBM Quantum Data Center in Europe Opens; Will Include IBM's Most Performant Quantum Systems - Expansion of IBM's utility-scale fleet of quantum computers in Ehningen, Germany is marked with ribbon-cutting by German Chancellor Olaf Scholz and industry leaders. Now online, Europe's first IBM Quantum Data Center includes two new utility-scale, IBM Quantum Eagle-based systems, and will soon feature a new IBM Quantum Heron-based system. These systems are capable of performing computations beyond the brute-force simulation capabilities of classical computers. (IBM.com)

Hyperscalers & Mag 7+

Microsoft Will Invest $80B in Ai Data Centers in Fiscal 2025 - Microsoft is on track to invest around $80 billion this fiscal year to build out AI-enabled data centers, company president Brad Smith said Friday. “Not since the invention of electricity has the United States had the opportunity it has today to harness new technology to invigorate the nation’s economy,” he wrote in the blog post titled The Golden Opportunity for American AI, continuing, “In many ways, artificial intelligence is the electricity of our age, and the next four years can build a foundation for America’s economic success for the next quarter century.” (Network World)

Earlier news:

Meta announces 4 Million Sq Ft, 2GW Louisiana Data Center Campus - Social media giant Meta has confirmed plans to build a data center in Louisiana announcing a $10 billion development in Richland Parish, northeast Louisiana. “We are excited to announce that Richland Parish, Louisiana, will be home to Meta’s newest data center — our 23rd data center in the US and 27th in the world,” the company said on Facebook. “This custom-designed four million-square-foot campus will be our largest data center to date. It will play a vital role in accelerating our AI progress.” (Data Center Dynamics)

Big Tech's AI Splurge Worries Investors About Returns - Big technology companies including Microsoft Meta, and Amazon, are stepping up spending to build out AI data centers in a rush to meet vast demand, but Wall Street is hungry for a quicker payday on the billions invested. Microsoft and Meta both said their capital expenses were growing due to their AI investments. Alphabet also reported that these expenditures would remain elevated, while Amazon said they would increase the rest of the year and into 2025.

Google Turns to Nuclear to Power AI data Centres - Google has signed a deal to use small nuclear reactors to generate the vast amounts of energy needed to power its artificial intelligence (AI) data centres. The company says the agreement with Kairos Power will deliver the first reactor this decade and bring more online by 2035. (BBC)

Infrastructure, Security & Technology

AI Will Change the Nature of Data Center Builds in 2025 - AI-driven transformation is reshaping data center builds for 2025 – from dense fiber systems to innovative cooling solutions. According to a May 2024 outlook published by Goldman Sachs, AI implementations are now expected to force up to a 160% spike in data center power demand, demonstrating the increased urgency in managing this growth as the race for resources heats up. (Data Center Knowledge)

POTUS Opens Publicly Owned Land to Data Centers Run on Clean Energy - President Biden issued an executive order to permit data centers on federal lands in a move aimed at bolstering clean energy and protecting national security during a boom in artificial intelligence (Sci Am)

Earlier news:

Microsoft Says New Technology Will Save Water At Mount Pleasant, WI Data Center Development - Microsoft’s data center development in Mount Pleasant, WI will be among the first in the world to use a new closed-loop system to recycle water — a move the company says “significantly reduces the need for fresh water.” “These new liquid cooling technologies recycle water through a closed loop,” Solomon wrote about the new technology. “Once the system is filled during construction, it will continually circulate water between the servers and chillers to dissipate heat without requiring a fresh water supply.” (WPR)

NTIA Issues Request for Comment on Data Center Policies - The US National Telecommunications and Information Administration (NTIA) has put out a request for comment on federal policies regarding data centers. The RFC was published on September 4 and seeks "comments on the challenges surrounding data center growth, resilience and security in the United States amidst a surge of computing power demand due to the development of critical and emerging technologies." The RFC specifically identifies artificial intelligence (AI) as a driving force for the "accelerated demands for more computing infrastructure." (Data Center Dynamics)

Data Centers Are Suddenly Everywhere — But Some Say "no thanks" - Some communities and politicians are pushing back against data centers — vital yet sometimes controversial facilities underpinning our digital lives and the AI explosion. Why it matters: More than 5,000 of these key tech facilities now dot the American landscape, often requiring massive amounts of energy and land and receiving big government incentives. For example: Atlanta's city council in Sept. banned data centers near transit stations, with one member arguing they conflict with housing, parks and other land use demands. (Axios)

Quantum-readiness, Hybrid & Co-Location

Quantum Computing Remains Experimental Despite 2024 Advances: Forrester - Quantum computing made significant strides in 2024, but it’s yet to demonstrate a practical advantage over classical digital computers, according to a recent trends report released by Forrester Research. “Despite improvements in qubit count, coherence time, and gate fidelity, the technology remains experimental, with broad-scale applications likely still a decade away,” maintained the report written by Forrester Vice President for Emerging Technologies Brian Hopkins and Principal Analyst David Mooter, with Stephanie Balaouras, Mike Gualtieri, Charlie Dai, James McGlynn, and Jen Barton. (Tech News World)

Earlier news:

10 Quantum Computing Milestones Of 2024 - When it comes to the general-purpose quantum computers, the superconducting approach seems to be in the lead right now, according to Gartner analyst Chirag Dekate. “The physics is much better understood and it’s now an engineering problem, not a physics problem,” he says. “We’re really at the level of real-world use cases,” says Holger Mueller, an analyst at Constellation Research. “We’ve jumped the qubit barrier.” #1. QuEra demonstrates new error correction method. This year started off with a series of announcements about breakthroughs in error correction. What’s the deal with error correction? Qubits are ridiculously sensitive and unreliable. “Error correction is vital for enterprise users of quantum computing,” says Yoram Avidan, CTO of Citigroup’s Innovation Lab and global head of Citi Accelerator... (Network World)

Accenture Expands Generative AI-Powered Cybersecurity Services and Capabilities to Accelerate Clients’ Resilience and Reinvention - Accenture announced new services and capabilities designed to reinvent business and cyber resilience through the power of gen AI, deepfake protection and quantum-safe data security solutions to help clients across industries become cyber-resilient organizations. “Modern cybersecurity protects across the entire business—from the digital core to the supply chain—and draws on gen AI-powered and quantum-proof protections, which are vital as cybercriminals ramp up new kinds of attacks using advanced AI technologies,” said Julie Sweet, chair and CEO, Accenture. “Our new cybersecurity services and centers help our clients use the latest technologies to safeguard their critical assets and increase their resilience, so they can reinvent with confidence and create more value faster.” (Accenture)

Cisco Takes Aim at Developing Quantum Data Center - Researchers from Cisco report there are substantial efforts underway now to develop practical quantum networks and data centers. Cisco Research recently hosted its Quantum Summit 2024 gathering that drew industry experts to discuss ongoing work focused on everything quantum from networking to security, but it was research being done in the quantum data center that garnered most of Cisco’s focus. (Network World)

DataCenter Workforce & Talent

Employment in Data Centers Increased by More Than 60% From 2016 to 2023 But Growth Was Uneven Across the United States - Employment in U.S. data centers — facilities that house the computer systems that store and manage data — increased more than 60% nationally from 2016 to 2023 but growth was uneven across the country, according to the U.S. Census Bureau’s Quarterly Workforce Indicators (QWI). The number of people working in data centers grew from 306,000 to 501,000 between 2016 and 2023, according to the Bureau of Labor Statistics. But the QWI shows where the growth is concentrated and provides a profile of data center workers. (US Census Bureau)

Earlier news:

How Many Jobs Are Available in Technology in the US? - The unemployment rate among technology professionals fell slightly to 2.5% in November, matching the low end of the rate for 2024 so far, according to an analysis of Bureau of Labor Statistics (BLS) data released in early December 2024. To succeed in the market, tech leaders must go beyond just technology, she said. They need to prove themselves as “AI forward thinkers,” a broad trait that includes systems thinking, data science, tech expertise, and change management.

Amid Data Boom, Equinix Engages in Layoffs and Restructuring - Although spending on data centers is projected to increase by 35% this year thanks to AI, data center operator Equinix confirmed to Light Reading it recently laid off 3% of its global workforce, or roughly 400 positions out of the 13,000 employees worldwide Equinix reported at the end of last year. (Light Reading)

Global Cybersecurity Talent Gap Widens - While the cybersecurity workforce continues to expand, there are only enough workers to fill 83% of available cybersecurity jobs, reports job market source CyberSeek. Data from CyberSeek shows that in the U.S., some 265,000 more cybersecurity workers are needed to solve current staffing needs. (Network World)

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