Data center rundown: September

26 September 2024

As we transition into fall and the days grow shorter (colder & darker!), the end of summer brought a surge of exciting data center news. I’ve rounded up the top stories from September, so grab a coffee and dive into the latest updates from the data center industry!

What to expect:

• XYZ & Infrapartners team up

• Blackstone’s mammoth acquisition of AirTrunk

• UK data centers safeguarded

• Oracle to build gigawatt-scale data center

• Other DC development news.

Let’s jump into the Data Center Rundown for September.

XYZ & Infrapartners announce game-changing partnership

Starting with some of our own news! This month, we announced our partnership with Infrapartners, combining prefabrication with augmented reality to build modular data centers around the globe, including in challenging regions like Africa.

Our collaboration leverages AR technology to ensure precise, factory-validated modules, significantly reducing construction time, costs, and errors. By visualizing modules in 3D and validating them before shipment, we’re able to accelerate project timelines and enhance accuracy, setting a new benchmark for efficiency in data center construction.

Stay tuned for more updates in the coming months – we can’t wait to share what’s next!

Blackstone to acquire AirTrunk for $24 billion

Big news broke at the beginning of the month as Blackstone unveiled plans to acquire AirTrunk, a leading Asia-Pacific data center platform, for over $24bn. Representing Blackstone’s largest investment in the region, the move will expand its global digital infrastructure portfolio, driven by the rise of AI and cloud services.

With a major presence in Australia, Japan, Singapore, and more, AirTrunk supports over 800MW of capacity and is positioned for further growth.

The deal is pending Australian regulatory approval.

UK Gov declares data centers ‘Critical Infrastructure’

Exciting update for UK data centers! The government has announced new measures to strengthen data center protection against cyber threats and IT outages. These efforts include enhanced cybersecurity protocols and energy resilience strategies to safeguard critical infrastructure.

As part of a broader initiative to drive the UK’s digital economy, the move aims to ensure data centers operate securely, reliably, and can meet the increasing demand for cloud services and digital infrastructure.

Scala unveils plans for $50bn Brazil DC campus up to 4.75GW

Scala Data Centers has proposed a massive $50bn project to build an "AI City" in Brazil, featuring a data center campus with up to 4.75GW of capacity. The development, which aims to support AI and cloud services, would be one of the world's largest data center campuses.

Scala's vision includes sustainable energy usage and infrastructure to meet the growing demand for AI-driven data processing in the region.

DC industry will emit 2.5bn tons of CO2 by 2030

According to Morgan Stanley, the data center industry could emit 2.5 billion tons of CO2 by 2030, about 40% of the annual emissions of the United States.

This surge is fueled by the growth of hyperscalers like Google, AWS, and Microsoft, despite their efforts to reduce emissions through clean energy and green technologies. However, this presents a significant market opportunity for decarbonization solutions, including clean power development and energy-efficient infrastructure.

Oracle to construct nuclear SMR-powered gigawatt data center

Oracle is planning to build a gigawatt-scale data center powered by three small modular nuclear reactors (SMRs), as revealed by founder Larry Ellison during a recent earnings call.

Ellison informed investors that Oracle currently operates or has under construction 162 cloud data centers globally, with the largest boasting a capacity of 800 MW, set to host Nvidia GPU clusters. However, he noted that the company will "soon" begin constructing data centers that exceed a gigawatt of capacity.

One of these upcoming projects already has a selected location and is in the design phase. Oracle has secured building permits for the three SMRs that will power this facility.

In its Q1 of fiscal year 2025, Oracle reported revenues of $13.3bn, reflecting a year-on-year growth of 7% in USD and 8% in constant currency.

More good news for UK DC development

Hot on the heels of the ‘Critical Infrastructure’ announcement, AWS revealed plans to invest £8bn in the UK over the next five years to expand its data center infrastructure. This investment aims to enhance cloud services and support local businesses, contributing to the UK's digital economy.

The initiative is expected to create thousands of jobs and strengthen AWS's commitment to sustainability and renewable energy use in its operations.

320MW data center campus proposed in North London, UK

A new 320MW data center campus is proposed in North London by DC01UK. The development is planned for an 85-acre site near South Mimms Services, with construction expected to start in 2027 and operations by 2029.

The campus aims to include on-site renewable energy and explore waste heat reuse. It faces challenges due to its location on Green Belt land, but developers plan a "sensitive" approach. The UK Labour government has expressed interest in easing Green Belt development restrictions for such projects.

atNorth plans 250MW data center in Ølgod, Denmark

atNorth plans to build a 250MW data center in Ølgod, Denmark, on a 176-hectare site called DEN02. Expected to be completed by 2026, the facility will provide colocation services for hyperscalers and companies with AI and high-performance computing needs.

It will feature advanced energy-efficient design and heat reuse technologies, contributing to sustainability. The excess heat will be repurposed for large-scale greenhouse farming. This project follows another atNorth data center under construction in Ballerup, Denmark.

Stay tuned for October’s data center rundown, and don’t miss our upcoming video showcasing our exciting partnership with Infrapartners, featuring insights from their team on the ground! In the meantime, head over to our resource center to stay up to date with our latest content. See you next month!