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Data Center News Roundup: Chip Deals, Vacancies, and Metal Foam
In this week's top data center news, we look at AMD’s acquisition of ZT systems, Apheros’ cooling metal foam, and a transcontinental decline in data center vacancies.
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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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Chip Watch: Dealmakers and Cyberattacks
At the top of this week’s news, on Monday, August 19, silicon vendor AMD announced plans to acquire ZT Systems, a provider of AI data center infrastructure. Valued at $4.9 billion, this marks one of biggest IT deals of the year.
“ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities,” said AMD Chair and CEO Dr. Lisa Su.
Writes Data Center Knowledge contributor Sean Michael Kerner: “The acquisition will not only position AMD as a stronger competitor to Nvidia but also help it further distance itself from rival Intel, which has struggled financially.”
Meanwhile, Microchip Technology Inc. disclosed a weekend cyberattack on its servers, disrupting the Arizona-based chipmaker’s regular systems and operations.
In a Tuesday report to the US Securities and Exchange Commission, the company stated: “As a result of the incident, certain of the company’s manufacturing facilities are operating at less than normal levels, and the company’s ability to fulfill orders is currently impacted. The company is working diligently to bring the affected portions of its IT systems back online, restore normal business operations and mitigate the impact of the incident.”
Demand Outstripping Supply in Europe, US
Recent reports from CBRE found data center vacancy rates in North America and Europe have been on the decline in 2024 as demand for rack space outpaces supply.
Vacancies in major US data center markets fell to a record low of 2.8%. Vacancies in major European markets, including Frankfurt, London, Amsterdam, Paris, and Dublin, dropped below 10%.
As a result, notes CBRE, these markets have seen “increased leasing costs and challenges in securing appropriate land and power.”
Cooling Innovations
Swiss tech startup Apheros secured $1.8 million in pre-seed funding to accelerate the development and deployment of “revolutionary metal foam-based cooling solutions.”
According to co-founder and CTO Gaëlle Andreatta: “There is a dire need for more efficient cooling solutions. AI development is driving exponential growth in data center energy consumption and inefficient cooling is the main culprit. Our unique metal foams have superior heat exchange and fluid transport properties, especially for liquid and two-phase cooling."
While Apheros’ metal foam has the potential to reduce energy consumption and cooling cost within the data center, the technology is still in an early phase of adoption. Apheros plans to use the funding, led by VC firm Founderful, to accelerate the development and deployment process.
Data Center Construction Financing Guide
Finally, data centers aren’t cheap. In 2023, construction costs for new data centers ranged from $6.4 million per MW in Mumbai to $13.7 million per MW in Tokyo.
For readers wondering where to start in the often-complicated process of funding a data center build or infrastructure upgrade, Data Center Knowledge contributor Patrick Lam shares his guide to financing for data center construction.
Lam gives an overview of debt and equity financing options, and the factors to consider, including data center type, market conditions, and scalability needs, when choosing a funding source.
Other Great Reads on DCK This Week
ECL Shares Details of ‘World’s First’ Hydrogen-Powered Data Center. The ambitious hydrogen-powered data center concept supports high-density GPU deployments and draws zero power from the grid.
Are Public Clouds More Sustainable Than Private Data Centers? While public cloud data centers are often viewed as more sustainable than private ones, exceptions do exist. Read on to understand these nuances and learn how to tailor your approach for optimal sustainability.
Dynamic Operations: Safeguard Your Data Center With CFD Simulation Software. Computational Fluid Dynamics (CFD) software can help data centers anticipate cooling failures and optimize energy efficiency. Gordon Johnson takes a closer look at this powerful data center tool.
AI Boom Fuels Earnings Growth For Europe’s Industrial Giants. Companies like ABB, Siemens, Legrand, and Schneider Electric have seen a surge in orders for data center infrastructure to help support computing demands.
The Cloud Talent Crisis: Skills Shortage Drives Up Costs, Risks. Organizations are facing increased cloud costs, risks, and inefficiencies due to a shortage of skilled cloud professionals.
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