Data center rundown: November

26 November 2024

We’ve reached the penultimate installment of our 2024 data center rundown – can you believe how fast this year has flown by? With the chill of winter settling in, it’s the perfect time to grab a hot drink (and maybe a cozy blanket, if you’re like me). Now, let’s dive into this month’s top headlines from the data center industry!

What to expect:

• CoreWeave secures funding

• Nvidia's data center revenue jumps 112%

• UK should create “data center zones” to ease development

• EC probes data center firms over no-poach deals

• ... and plenty of planning news.

Let’s dive into November’s data center rundown.

CoreWeave secures another $650m investment

CoreWeave, a GPU cloud provider specializing in AI applications, has secured a $650 million minority investment.

The funding round was led by major investors such as Jane Street, Magnetar, Fidelity Management, and Macquarie Capital, with additional participation from Cisco Investments, Pure Storage, BlackRock, Coatue, and others. CEO Mike Intrator emphasized that this investment highlights confidence in CoreWeave's AI cloud platform.

Founded in 2017 as a cryptomining firm, CoreWeave has transitioned to offering GPU access for AI workloads. The company plans to expand globally, aiming to open 28 data centers by the end of 2024 and 10 more in 2025.

CoreWeave has attracted significant attention from major companies like Microsoft, which may invest up to $10 billion in the platform by decade’s end.

The company is also reportedly preparing for an IPO in 2025, with a current estimated valuation of $23bn.

Nvidia's data center revenue soars 112% amid AI surge

Nvidia’s data center revenue has surged by 112% year-over-year, reaching $30.8bn in the latest quarter.

This growth is driven by the continued boom in AI, with demand for Nvidia’s Hopper and Blackwell technologies fueling a global shift toward Nvidia computing.

The company's total revenue for the quarter hit $35.1bn, a 94% increase from the previous year.

Nvidia expects its fiscal fourth-quarter sales to rise by 70%, with total revenues projected to reach around $37.5bn. However, there are supply constraints for some of its systems, especially Blackwell, which is expected to face higher demand than supply for the next few quarters.

AWS on track for $110bn annual revenue run rate in 2024

AWS is on track to reach an annualized revenue run rate of $110bn in 2024, driven by strong growth, particularly in its AI services.

Amazon CEO Andy Jassy attributed this growth to AWS's expanded role in generative AI, with demand for AWS infrastructure (including cloud and chip services) growing faster than anticipated. This accelerated demand has led AWS to face capacity constraints, especially in chip supply.

To meet this demand, AWS is significantly ramping up capital expenditure (CapEx), with projections of $75bn in 2024 – most of which will be directed towards AWS infrastructure, such as data centers, networking gear, and AI-specific hardware.

Report: UK should create “data center zones” to ease development

A government-commissioned report, led by angel investor Matt Clifford, is set to propose the creation of "computing zones" in the UK to make it easier to build data centers and related infrastructure.

This plan, part of the "AI Opportunities Action Plan" submitted in November, aims to streamline development by designating specific areas for data centers, including energy supplies.

The report also recommends improving the visa process for AI talent.

The UK government has already taken steps to support data center growth, recognizing them as critical national infrastructure and drawing in investments from major players like Cloud HQ and CyrusOne.

In Planning

Vantage DC

Vantage Data Centers is planning to develop a data center campus outside Reno, Nevada, with a $254m investment in Storey County. The facility will likely house one or two tenants and is set to begin operations in phases, with the first building (NV11) expected to open by Q4 2026, followed by another (NV12) by Q1 2026. Vantage is also exploring further expansion in the area.

Stack Infrastructure

Stack Infrastructure plans to expand its Lithia Springs, Georgia, data center campus with two additional two-story buildings, adding 196,030 sq ft and 227,260 sq ft. This follows an October 2023 filing for two three-story facilities, scheduled for completion by May 2026. The 39-acre campus will offer 48 MW of capacity at an estimated $380.9m cost.

CyrusOne

CyrusOne has filed plans to develop a 250,000 sq ft data center in Bosque County, Texas, near Whitney. The $750m project, set for completion by March 2025, will be located near an 800MW natural gas plant. The company is expanding its Texas footprint, with additional projects in the Dallas-Fort Worth area.

Meta

Meta is planning to build a $5bn AI data center in Holly Ridge, Louisiana, located in Richland Parish near Monroe. The project, known as "Project Sucre," is expected to be a significant investment, with Meta aiming to allocate $5bn towards it. The campus will cover over 2,250 acres of agricultural land off Highway 183 and Thomas Road.

AWS

AWS plans to invest $2bn in a new data center campus in Sunbury, Ohio, bringing its total investment in the state to $10bn. The project will be located in Delaware County’s Sunbury Business and Technology Park, with the first building scheduled for completion by 2034. The Sunbury City Council approved a property tax exemption incentive for the project.

1.7 Million Sq Ft Data Center Planned Near Atlanta, Georgia

Sailfish Investors has filed plans for a 1.78 million sq ft data center development outside Social Circle, Georgia, set for completion by January 2027. The 344-acre site, near Meta’s existing facility, is expected to become Atlanta’s next data center hotspot, thanks to its proximity to key energy infrastructure. Sailfish is in talks with hyperscalers and is developing additional data centers across the US.

European Commission investigates data center firms over alleged no-poach agreements

The European Commission (EC) has launched unannounced inspections at data center construction companies across Europe, investigating possible "no-poach agreements" or illegal collusion.

These agreements involve firms secretly agreeing not to solicit each other’s employees or to fix wages and employment terms.

The EC has sent official information requests to several companies but did not disclose which ones are under scrutiny.

The investigations, coordinated with national competition authorities, may take an indefinite amount of time, and companies that cooperate may receive immunity or reduced fines. This is part of ongoing efforts to curb anticompetitive practices in the industry.

And that's a wrap on November’s data center rundown! Hope you enjoyed the latest scoop.

If you're craving more industry insights and updates, dive into our resource center. It's packed with articles, webinars, and expert analysis to keep you in the loop.

Our final rundown of 2024 is just around the corner – stay tuned for more breaking news and trends shaping the data center industry!