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The AI boom has triggered a surge in spending on data centers. The AI boom has supercharged a wave of spending on data centers. AdvertisementAdvertisementThe data center boom is set to double or triple the amount of energy consumed by these data centers. A recent Cowen research report estimated that AI data centers could require more than five times the power of traditional facilities. Amazon does not disclose how many data centers it occupies, where they are located, or how much electricity they consume.
Persons: , ChatGPT, it's, Jonathan Gray, Cowen, Marc Ganzi, Shaolei Ren, Tom Keane, Keane, Bernstein, Mark Moerdler, Jahi, Matt McCollister, Pena Popo, Blackstone, Karla Moran, Moran Organizations: Service, McKinsey, Nvidia, UC Riverside, Microsoft, Washington, Getty, Lincoln Property Company, Harrison Street, Google, Meta, Amazon, Blackstone, Income Trust, QTS Realty Trust, Amazon Web Services, AP, Phoenix Locations: America, Rural America, Loudoun Meadows, Aldie , VA, Ohio, New Albany, Columbus, Northern Virginia, Dallas, Phoenix, Silicon Valley, Chicago, Washington, DC, Virginia, New York City, Salt
The growth could put data centers in competition with local populations for space and resources. As my colleague Dan Geiger reports today in an excellent story on a data center development boom, the AI explosion has triggered a surge in investment in these warehouse-like complexes. For example, DataBank, a data center provider backed by investment firm DigitalBridge, is putting smaller data centers in the suburbs of "tier two and tier three cities," CEO Marc Ganzi told my colleague Ellen Thomas. Unlike e-commerce warehouses, these data centers don't add a bunch of traffic to the roads, and they're pretty quiet. As a result of limited generation capacity in places like Arizona and northern Virginia, these data centers are popping up anywhere where the local utilities can support them.
Persons: tony, Dan Geiger, Jonathan Gray, Blackstone, Marc Ganzi, Ellen Thomas Organizations: Morning, APS Locations: Ohio, Georgia, Virginia, Loudoun Meadows, Aldie , Virginia, Texas, Nevada, Utah, Phoenix, Atlanta, Reno, Arizona, Southwest
On what was recently farmland, Amazon data centers have been built as close as 50 feet from residential houses in the Loudoun Meadows neighborhood on January 20, 2023, in Aldie, VA. Amazon's opposition to the clean energy measure is at odds with its broader push to improve its environmental impact. Amazon says it's on a path to using 100% renewable energy across its business by 2025, and is the largest corporate buyer of renewable energy. Experts have said the nation's out-of-date electrical grid remains a barrier to accelerating the transition to clean energy sources. Amazon has pledged to get all of its data centers running on renewable energy, but it has yet to divest completely from fossil fuels.
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