A new study is shedding light on the growing demand for AI and how that has led to a surge in data centers across the US market.
The study highlights a staggering 70% rise in the past six months, not to mention the massive electricity demand required to support them.
The CBRE Group shared the study, stressing the 3.9 GW jump since last year. These centers are usually found in massive warehouses and are commonly measured by power consumption.
As per the real estate company based in Dallas, more than 500 MW of these data centers have sprung up across both the US and Canada. Moreover, the leading five data markets across America include Silicon Valley, Dallas, North Virginia, and Phoenix as well as Chicago. There are many other American states where growing demands for AI have led to the need for these data centers. However, they are still in the planning and construction phase.
Seeing the demand and arrival of these centers increase by four times from last year is a major trend, explained the CBRE. The reason behind the trend is simple, more cloud providers and a demand for AI which fuels the need for greater power capacity.
The usage and adoption of apps also drive more demand for these data centers, thanks to greater computing and data processing tasks. Creating more data centers does not come easy, not to mention the great costs attached. Companies need to pre-lease space ahead of time and also ensure completion is done to reach future goals to meet power requirements.
Additionally, a lot of water is needed for cooling to ensure servers function at optimal levels and don’t get overheated. We’ve already seen concerning reports about water usage and how that could give rise to a shortage if data center construction doesn’t halt.
The report also sheds light on the costs related to leasing established centers. New data centers demand premium prices when compared to old ones. The overall inventory has gone up 23% since last year as growth grew by 10% this year.
This report also notes how strain on the established infrastructure for powering facilities located in smaller markets is more feasible. Meanwhile, other sectors that could also see a growing rise in these centers include fiber installers and electric companies. They are keen on better internet access and grid management. So far this year, it’s the rise in digital reality that continues to attain growth, thanks to more data centers. A lot of capital is needed for leasing, and buying lands and equipment. Did we mention fund loads for construction?
It’s never easy when you’re dealing with fluctuating market prices and growing power consumption. However, the speed at which these centers are taking place is a clear signal that we’re in for a major reality check in terms of growing demand and shortage of power.
