With data center news spreading faster than ever, we want to make it easy for industry professionals to stay on top of things and find the most important stories of the week.
The Knowledge about data centers News Roundup brings you the latest news and developments in the data center industry – from investments and mergers to security threats and industry trends.
To stay up to date on everything related to data centers, subscribe to the Data Center Knowledge Newsletter to get content straight to your inbox.
Market growth in AI and data center generators
According to a new S&P Global Ratings reportGlobal spending on AI, particularly in the data center space, is expected to grow by over 20% by 2028, reaching 14% of total IT spending.
“Cloud giants are investing heavily in AI despite uncertain monetization plans. Total investments for Microsoft, alphabetAnd Meta an increase of 60% compared to the previous year,” said Christian Frank, technology director at S&P.
In addition, AI chips drove growth in the semiconductor sector. At Intel and AMD, data center chip revenues rose 31% year-on-year and 9.4% quarter-on-quarter.
Finally, a new study by Global Market Insights found the market for data center generatorswill also grow over the next eight years, doubling its current market value to over $2.1 billion by 2032. With aging infrastructure and increasing extreme weather events, data centers are deploying backup power systems—primarily in the form of generators—to avoid power outages.
Equinix expansion
Driven by continued demand for AI infrastructure services, Equinix recorded particularly strong growth in the second quarter amidst the industry’s large number of hyperscale operators.
In recent months, Equinix announced plans to enter the Philippines, opened its first data center in Johor, Malaysia, and began construction of a new data center in LisbonPortugal.
“Business transformation remains a critical priority for our customers, and the emergence of AI marks an inflection point for our industry,” said Adaire Fox-Martin, CEO of Equinix, during his company’s Aug. 7 conference call. “AI, much like the growth of cloud technologies a decade ago, will take time to fully develop.”
Equinix’s revenue exceeded $2.2 billion in the second quarter of 2024, an 8% year-over-year growth for the Redwood City, California-based company.
This week’s data center offerings and developments
Topping this week’s data center development news: Princeton Digital Group has acquired a Yahoo data center in western Singapore for an undisclosed price. Yahoo will continue to host its infrastructure at the 5 MW facility near Jurong Port, according to a press release on Tuesday.
In India Aurum Equity Partnersa real estate investment firm, announced plans to build a 100 MW $400 million AI-powered green data center in Hyderabad.
“Our next-generation data center framework is designed to bridge the digital divide between rural and urban India. This initiative will make government services like e-Seva, e-Payment and e-Education accessible to all and support our mission to connect every corner of the country,” said Aurum CEO and Chairman Venkat Bussa.
On the other side of the pond, in the United States, the construction of a 1.1 billion US dollars AWS Data center was approved by Indiana’s St. Joseph County Council by a vote of 7 to 2. While supporters point to the project’s potential to create jobs and contribute to the local economy, opponents criticized a 10-year, $4.2 billion tax break for one of the world’s richest companies.
In Missouri, AnimalPoint acquired a building in downtown St. LouisMissouri to build its newest data center. Built in 1917 as an automobile dealership and distribution center for the Willys-Overland Company, the building offers 22,600 square feet of data center manufacturing space and is publicly traded. National Register of Historic Places.
TierPoint’s acquisition follows a trend in which data centers often occupy vacant office buildings in inner cities under the guise of revitalization. While this is an economic boon – especially in cities suffering from depopulation and private disinvestment – it often comes at the expense of people-centered development.
“We know that revitalizing downtown into a safe, vibrant and beautiful neighborhood in the heart of our metropolis will take time. We also know that doing so requires new thinking that will diversify the types of businesses and housing options here,” said Kurt Weigle, Chief Downtown Officer of Greater St. Louis, Inc.
Finally a newbie Sharp energy continues its expansion in the States with a 24 MW project in Columbus, Ohio area. The 210,000-square-foot facility, which is already under construction and will support generative AI and advanced computing needs, is scheduled to open in July 2025.
More great reading in DCK this week
The biggest threats to data center availability – and how to overcome them. Power outages, cooling issues, and third-party vendors are some of the biggest threats to data center uptime in 2024. Learn how to effectively mitigate these risks.
Assessing the state of data center supply chains in the second half of 2024. The data center supply chain is showing signs of improvement but still faces significant challenges. Discover the current trends and issues shaping the industry.
More than diversity training: The real challenges for women in the technology industry. Despite a renewed focus on DEI, progress for women in tech has stagnated. The industry must rethink its approach to address the unique challenges women face, writes Carrie Goetz.
Critical AWS vulnerabilities enable S3 attacks galore. Researchers at Aqua Security discovered vulnerabilities that allow threat actors to guess the name of S3 buckets based on their public account IDs.
Quantum computing is making faster progress than expectedAccording to a QuEra survey, 40% of experts believe that quantum technology will surpass classical technology in five years.
