Rising Demand for AI-Optimized Data Centers

Published On: July 8th, 2024Categories: Featured News, News


The growing need for data center space is being driven by the increasing demands of artificial intelligence (AI) technologies. Industry experts anticipate a significant increase in available data center space by the third and fourth quarters, as AI prompts substantial design innovations in this sector.

Design Innovations for AI
Architects and engineers are spearheading the development of new AI-optimized data centers, characterized by higher ceilings and wider corridors. These modifications are essential to accommodate the advanced cooling systems required to prevent AI servers from overheating. Tom Earp, principal engineering director at the San Francisco-based architecture firm Page, highlights these changes as crucial for the next generation of data centers.

Expansion Efforts by Major Players
A prominent example of this trend is Google’s expansion of its data center in Oregon, aimed at meeting the growing demands of AI. Additionally, developers are actively seeking locations where land and electricity are more affordable, a factor that has accelerated data center construction in areas like New Jersey. According to a reports by CoStar Insights, South Jersey is emerging as a leading region for new data center projects due to these economic advantages.

Surging Construction and Planning
The total space currently under construction in both primary and secondary markets surpasses 5.3 gigawatts. To put this into perspective, one gigawatt can power approximately 750,000 homes. The majority of this space is already preleased, reflecting the escalating demand driven by the massive volume of data being generated. Moreover, nearly 12.3 gigawatts of data center power capacity are in the planning stages. These facilities are typically powered by electricity, gas, or a combination of both, indicating a robust pipeline for future development.

Supporting Statistics
To illustrate the scale of this growth, consider that global data center energy consumption has been steadily increasing, with AI workloads contributing significantly to this rise. According to a report by the International Energy Agency (IEA), data centers worldwide consumed around 200 terawatt-hours (TWh) of electricity in 2020, a figure that is expected to grow as AI applications become more widespread. This surge in energy demand underscores the necessity for innovative design and strategic location choices in the development of new data centers.

In conclusion, the data center industry is undergoing a transformation driven by the demands of AI. With ongoing construction projects and strategic planning, the sector is poised to meet the challenges of increased data generation and processing, ensuring that AI technologies can thrive in optimized environments.

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