Data Center News Roundup: Key Trends in AFCOM’s Latest Industry Report, VMware’s Product Controversy

With data center news moving faster than ever, we want to make it easy for industry professionals to cut through the noise and find the most important stories of the week.

The Data Center Knowledge News Roundup brings you the latest news and developments across the data center industry – from investments and mergers to security threats and industry trends.

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State of the Data Center 2024 

Accelerating growth in the artificial intelligence and wider digital services industries is fueling demand for new data center developments around the world, according to AFCOM’s latest State of the Data Center Report. 

Published this week, the eighth edition of the association’s annual study offers a snapshot of an industry that is at once experiencing a “massive boom in infrastructure design and construction” but also facing a growing list of challenges in key areas such as energy, cooling, and sustainability.  

Ahead of the report’s launch Data Center Knowledge spoke to numerous analysts, operators, and industry insiders to get their take on where the industry is headed in 2024 

“We expect new data center space will need to be added for years to come,” said Dell’Oro Group analyst Baron Fung. “Already, the hyperscale cloud and colocation service providers are in a race to build newer and more facilities globally.”  

Related:AFCOM: AI Boom Fueling Data Center Construction, Design Innovation

Check out the full article for more. 

VMware Product Assurances 

In other news this week, DCK writer Andy Patrizio took a closer look into how VMWare’s controversial product changes could impact SMBs. 

In the weeks since Broadcom closed its acquisition of VMware, there has been a considerable amount of controversy surrounding the wholesale changes taking place across the company. This includes VMware’s new licensing policy, which was misinterpreted as key data center and IT systems software being deprecated.

While the products are not going away, “angst” around the company’s portfolio continues, according to one analyst. 

Catch up on the full story here. 

Multibillion-Dollar Developments 

In construction and development news, Amazon Web Services (AWS) has unveiled plans to invest $10 billion to build two data center complexes in Mississippi. The project is expected to create 1,000 new jobs in the Magnolia State. 

“Since 2011, AWS has invested more than $108 billion in its infrastructure across the US to support customers of all kinds, and across all industries, in their digital transformation,” said Roger Wehner, AWS director of economic development.  

Related:How VMware's Controversial Product Changes Could Impact SMBs

In Europe, the UK government has awarded quantum networking company Nu Quantum a $2.9 million contract to deliver a world-first modular, rack-mounted, scalable quantum data center prototype. 

Networking giant Cisco will contribute to key system requirements and help to evaluate final deliverables using its experience in delivering scalable, high-performance data center services. 

Sustainable building group Peri 3D Construction has completed what is purportedly the largest 3D printed building in Europe, which will be used as a data center. 

With construction now complete, the ‘Wavehouse’ facility in Heidelberg, Germany, will be turned into a data management and cloud services center, operated by Heidelberg IT Management. 

Meanwhile, several private equity firms have reportedly been picked to submit binding bids to take part in a potential $1 billion funding round in STT Telemedia Global Data Centres (STT GDC). 

Apollo Global Management, Blackstone, and Stonepeak Partners are among those shortlisted for the fundraising by STT GDC, the Singaporean digital infrastructure provider backed by state-owned investor Temasek Holdings. 

Bloomberg News previously reported that STT GDC was exploring raising as much as $1 billion before a potential initial public offering, possibly in the US or Singapore. 

For more of the latest data center development news, check out our February 2024 data center development roundup. 

Prickly Subject 

Following last week’s report that cloud and IT services company Tietoevry was hit by a ransomware attack at one of its data centers in Sweden, Schneider Electric found itself in the security headlines following a cyber-attack. 

Attackers are understood to have targeted the industrial giant’s Sustainability Business division, and reports thus far have attributed it to a rising ransomware operation called ‘Cactus’. 

According to a press release from the company, the damage from a January 17 breach was limited to only its sustainability division, which provides software and consulting services to enterprises, and affected no safety-critical systems. 

Schneider has not yet revealed the scope of data that may have been lost to its attackers but did acknowledge one affected platform: Resource Advisor, which helps organizations track and manage their ESG, energy, and sustainability-related data.  

Other Great Reads on DCK This Week 

Data Center Approach to Legacy Modernization: When is the Right Time? Kevin Tate, Mainframe Portfolio Director at Jumar, offers insight into how data centers can identify when improvements are needed to ensure business growth. 

'Microsoft Is Back' – How AI Put the Tech Giant on Top Again. With a huge budget and a close relationship with ChatGPT, Microsoft is wielding huge power over the AI market. 

Top 5 Skills Gaps Every Cloud Practitioner Needs to Close. The key to successful cloud adoption lies in upskilling teams to ensure efficient and secure implementation. 

Amazon Gains After Robust Sales, Strong Profit Outlook. AWS revenue increased 13% to $24.2 billion, with executives saying growth will accelerate this year. 

2024 Cloud Computing Trends to Watch. Omdia chief analyst Roy Illsley discusses five trends in cloud computing. Learn about their impact on businesses and technology.