The Data Center Rundown: July

29 July 2024

As summer is in full swing, the data center industry is showing no signs of taking a well-earned vacation. With so much activity this month, it’s been challenging to highlight all the top stories, and undoubtedly, a few key pieces might have been missed. So, sit back, relax, and enjoy catching up on the latest developments in the data center space.

What to expect:

• Turner acquires Dornan Group

• Nscale acquires Kontena

• Blackstone's $70bn pipeline

• QTS secures two sites

• Yondr completes phase one in Slough

• Hyperscalers advocate for emissions transparency

• And more!

Let’s get into July's Data Center Rundown.

Turner acquires Dornan solidifying DC position

Starting off strong, and only announced a few days ago (when writing), we have the news that construction giants, Turner Construction has acquired 100% of engineering and construction firm, Dornan Group.

Established in 1966, Dornan delivers mechanical, electrical and HVAC engineering services on complex large-scale projects for blue-chip clients in the advanced technology sector, including data centers (we’ve actually worked alongside them on a hyperscale data center: check it out here) and biopharma facilities.

Dornan CEO, Brian Acheson, highlighted that the acquisition will benefit both employees and clients, enhancing service delivery and project execution. Though the terms of the deal are undisclosed, this acquisition is set to bolster Turner and Dornan's positions in the European data center market.

One to keep an eye on for future developments...

More acquisition news...

Just a few days before the Turner Dornan announcement, Cloud provider, Nscale revealed it has acquired high-density modular data center and AI data center solutions provider, Kontena.

The acquisition aims to bolster Nscale's infrastructure backbone for its GPU cloud, though the deal's value and terms remain undisclosed. Jef Laurijssen, CEO of Kontena, expressed enthusiasm about the merger, noting it will accelerate the development and deployment of cutting-edge Generative AI Data Center solutions, benefiting AI and HPC markets.

Kontena's flagship product, the Edge data room, offers modular AI data center solutions for on-premises and remote deployments. Nscale plans to deploy these modular centers at its 100% renewable energy-powered sites in Norway and the US, marking a significant step forward.

Again, one to keep an eye on in the future.

Blackstone hits $70 billion in prospective data center pipeline

Like I said, no signs of slowing down, as Blackstone's recent earnings call revealed. The asset manager has over $70bn in prospective data center pipeline development, with a current portfolio of $55bn, including facilities under construction.

Blackstone CEO Stephen Schwarzman likened AI's impact to Thomas Edison's electric light bulb patent in 1880. He noted that, just as the build-out of the electric grid powered the industrial revolution, today's data centers are essential for the AI revolution.

Schwarzman highlighted that this growth presents unprecedented investment opportunities, positioning Blackstone to be the largest financial investor in AI infrastructure globally. He added, "Our portfolio includes $55bn in data centers, including those under construction, and over $70bn in prospective developments. Since we took QTS private in 2021 for $10bn, it has grown its lease capacity sevenfold."

QTS secures two sites

Speaking of QTS, they’ve been busy this month, with two confirmed site acquisitions. Firstly, they’ve been confirmed as the company behind a major data center campus outside Richmond, Virginia.

QTS purchased the 622-acre White Oak Technology Park II site in Henrico County for about $137 million, including the remaining 397 acres for $118.8 million from Hourigan, who rezoned the land for industrial use. QTS plans to expand its existing data center campus, leveraging its connections to subsea internet cables. The project, slated for new infrastructure installations by 2026, aims to support local economic development and affordable housing initiatives.

The data center firm has also acquired 206 acres of land in Phoenix, Arizona. QTS said in a statement to the Business Journal that it looks forward to continuing its investment in the greater Phoenix area to "meet growing demand from our customers in the market as we expand our footprint."

Yondr completes first phase of its Slough Campus

Celebrations commenced as Yondr announced the completion of the first phase of its 30MW facility in Slough, UK. Located in West London, the first 20MW of the facility is now operational.

Peter Hill, VP of design and construction EMEA, praised the dedication and expertise of Yondr and its partners, highlighting this project as a significant milestone. He emphasized the importance of the handover for Yondr's Slough campus and the broader UK data center ecosystem in addressing the global demand for increased data capacity.

That’s not all on Slough!

Slough continues to be a key data center hub in the UK, with Digital Realty acquiring a facility from Iron Mountain for $195 million. The 13-acre site includes a fully operational data center and offers space for future development, further strengthening Digital Realty's presence in the region.

Hyperscalers sign open letter for transparency on Scope 3 emissions

Elsewhere, Amazon Web Services (AWS), Digital Realty, Google, Meta, Microsoft, and Schneider Electric have joined forces asking suppliers to better detail their emissions as they move to reduce the sector's carbon footprint.

AWS, Google, Meta, and Microsoft, members of the iMasons Climate Accord Governing Body, highlighted the importance of Environmental Product Declarations (EPDs).

EPDs are standardized, third-party-verified documents that detail the embodied emissions of a product throughout its lifecycle, including raw materials, manufacturing, transportation, use, and end-of-life.

These companies noted that Scope 3 emissions can account for 38-69% of data centers' total carbon footprint.

Miranda Gardiner, executive director of the iMasons Climate Accord, emphasized that EPDs are essential for creating resilient, climate-positive digital infrastructure by promoting transparency and accountability within the global supply chain.

EdgeConneX & TA Realty plan 324MW campus

EdgeConneX and TA Realty are planning to develop a 324MW data center campus outside Atlanta, Georgia. The project will be in Douglasville and consist of multiple data center facilities. This collaboration aims to cater to the growing demand for data center capacity in the region. The new campus will enhance EdgeConneX's presence in the Atlanta market and is expected to support various industries' digital infrastructure needs.

NTT awarded prime contractor for FBI's Mission Critical Services

Not so top secret! NTT Data has been awarded an $8bn contract to provide mission critical services for the FBI. This contract will cover a variety of services including IT support, cybersecurity, and data management, enhancing the FBI's operational capabilities. The agreement underscores NTT Data's role in supporting essential government functions with advanced technological solutions.

Hope you enjoyed July’s data center rundown instalment. Be sure to check back at the end of August for the next installment, and don’t forget to explore our regularly updated content over at our resources hub. Hopefully, some of you can squeeze in a vacation in the meantime. See you next time!