Data Center News Roundup: IPOs and Storage Sales

With data center news moving faster than ever, we want to make it easy for data center 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.

To keep up-to-date with all things data centers, subscribe to the Data Center Knowledge newsletter to get content straight to your inbox.

1. Storage Sales Decline

High living costs, surging interest rates, and geo-political turmoil have finally caught up with the storage industry after a period of strong growth. In Q2, server sales revenue dropped by nearly 12% year-on-year, and forecasts anticipate further slumps through the end of the year. Analysts are predicting negative revenue growth for both enterprise servers and storage in 2023 — with hopes for a recovery in 2024.

2. A Data Center on Wheels

Verizon’s newest mobile data center, the Mobile Onsite Network-as-a-Service (NaaS) vehicle, will serve as a portable data center for providing “5G, edge compute, security, and connectivity to locations that are in need of that type of service.” Leveraging local data processing capabilities to reduce latency and efficiently manage data, the vehicle may have use cases in testing enterprise applications, conducting bridge and mine inspections, and surveying farmland.

3. With Looming IPO, Arm Pitches ‘Purpose-Built’ Chips

Alongside what will likely be the largest IPO of the year, Arm Ltd. is highlighting a shift toward a new “purpose-built approach” in its chip design strategy. Arm’s move aims to take advantage of the growth of companies in the cloud computing and IoT spaces, positioning the company as a competitor to its chip-making customers.

4. Compass Datacenters Moves Into Sears HQ

Following the trend of data centers moving into vacant office buildings, Compass Datacenters has acquired the former Sears headquarters in Hoffman Estates, Illinois. Village officials hope that the acquisition will fuel investments and jobs in the Chicago suburb.

5. The Water Consumption of Generative AI

Tech giants including Microsoft and Google are facing a surge in water consumption, particularly in major data center regions, as a result of the development and use of advanced AI models. Drawing on research from the University of California, Riverside, the AP reported that the uber-popular ChatGPT uses an estimated 500 milliliters of water for every 5 to 50 prompts or questions — depending on season and server location. As generative AI tools become more popular, how will we address their water consumption and associated environmental impacts?