What caused the huge concentration of data centers into a few geographies? Subsidies.
In the USA, which is home to the world’s biggest number of data centres, Linesight says that the pipeline for new data centre projects currently stands at US$160 billion, with approximately a fifth of that pipeline located in the state of Virginia. EU to spend €1.2bn funding European cloud and Edge efforts Hopes to break the US hyperscaler cloud monopoly The European Commission will provide €1.2 billion ($1.29bn) in state funding for cloud computing and Edge development. The IPCEI Next Generation Cloud Infrastructure and Services (IPCEI CIS) was jointly notified by seven Member States: France, Germany, Hungary, Italy, the Netherlands, Poland, and Spain. Member states will provide the funds, which is expected to lead to an additional €1.4bn ($1.5bn) in private investments.
Where are most data centres being built? “The US data centre market in particular is booming as operators rush to accommodate the rise of AI, with total capacity, rack density and energy consumption all set to increase substantially,” says Patrick Ryan’s executive vice president for the Americas. In Europe, too, Linesight says that, despite a subdued macroeconomic outlook, which is likely to lead to a contraction in overall construction outlook in 2024, demand for data centres, as well as hi-tech industrial buildings, manufacturing and infrastructure is expected to remain high with London the city with the most projects under execution, followed by Germany, France and Ireland. Powered by subsidies, they will consume the last MW available. I have been warning, that the geography of the data centres has to change.
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