Data Center News Roundup: Semiconductor Sales Up 20%, IBM Takes a Quantum Leap

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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Powering the Future 

Global semiconductor sales topped $53 billion in August 2024, an increase of more than 20% compared with the same period last year, new data reveals. 

The latest monthly sales insight from the World Semiconductor Trade Statistics organization offers hope to industry observers that chipmakers are back on track after an underwhelming 2023. 

Regionally, year-on-year sales were up in the Americas (7.5%), China (19.2%), Asia Pacific/All Other (17.1%), and Japan (2.0%), but down in Europe (-9.0%). 

“The global semiconductor market continued to grow substantially in August, hitting its highest-ever sales total for the month of August, and month-to-month sales increased for the fifth consecutive month,” said John Neuffer, president and CEO of the Semiconductor Industry Association (SIA). 

Related:Broadcom’s ‘Nvidia Moment’ Has Arrived. Now It Needs to Deliver

The news came as the SIA officially opened the National Semiconductor Technology Center (NTSC) for membership. 

Overseen by the US Department of Commerce, the public-private partnership is aimed at strengthening US semiconductor technology leadership with a focus on innovation, collaboration, and education. 

“The NSTC represents the foundation for the next wave of technological breakthroughs, serving as the anchor institution where we shape the future of semiconductor innovation,” said Secretary of Commerce Gina Raimondo.  

“With unprecedented collaboration between industry, academia, labor organizations, and government, members of the NSTC will help to secure America’s leadership in global semiconductor technology.” 

Europe’s First Quantum Data Center 

Across the Atlantic, IBM cut the ribbon on Europe’s first quantum data center. The facility in Ehningen is IBM's first outside the US and will feature a new Heron-based system, offering a significant increase in performance over 2022 IBM Quantum systems. 

The announcement came as the SIA reported that global semiconductor sales were up 20.6% year-on-year in August. 

Asked about the anticipated benefits of the new IBM Quantum Data Center in Europe, Dr Juan Bernabe-Moreno, director of IBM Research (Europe), told Data Center Knowledge that industries such as banking, engineering, energy, and the automotive sector are among those that will see a boon. 

Related:AWS Launches Trainium2 Custom AI Chip, Data Center Upgrades

“Ultimately, the center should facilitate access to quantum computing and help organizations solve some of the most complex challenges they face today,” he said. “It houses two utility-scale quantum systems – with a third one soon – that should enable enterprises to push the boundaries of what’s possible with quantum even further.” 

Check out the full article for more details. 

New Openings 

In other data center and cloud developments this week, Kao Data began construction of its new $465 million data center in Stockport, Greater Manchester. 

Attending the groundbreaking ceremony, Greater Manchester Mayor Andy Burnham told Data Center Knowledge the 40 MW facility will help support the development of the region’s AI cluster and promote the North West of England as a leading hub for tech and innovation. 

Elsewhere, Microsoft announced its largest single investment in Brazil, with plans to spend $2.6 billion in cloud and AI infrastructure over three years. The initiative aims to foster the development of the AI ecosystem in Brazil, accelerating the country’s AI innovation.  

Related:Biden Tightens Chip Controls on China as Clock Ticks Down

Google plans to invest $1 billion to build data centers in Thailand, joining global tech companies in adding cloud and AI infrastructure in Southeast Asia. The tech giant also said it would bring 186 MW of clean energy generation to India’s grid, thanks to a new partnership with CleanMax. 

Equinix formed a joint venture with Canada Pension Plan Investment Board and Singapore’s GIC to develop new data centers, and Oracle plans to invest $6.5 billion in Malaysia. 

For more of the latest data center developments around the world, check out our bumper October roundup. 

Other Great Reads in DCK This Week 

How to Effectively Manage Your Hardware in Colocation Data Centers. Thinking about managing your hardware in a colocation data center? Discover the best practices for keeping control of your infrastructure in off-site facilities. 

Choosing the Right Data Center UPS: 5 Key Factors for Improving Uptime. Optimize your data center operations with these five essential uninterruptable power supply (UPS) selection criteria. 

Texas Regulator Wants Data Centers to Build Power Plants. Texas may ask Big Tech to build power plants for AI data centers as their energy demand surges, threatening grid stability. 

Managing Risk: Is Your Data Center Insurance up to the Test? Insurance experts Stephen Raptis and Amy Koss review the types of insurance coverage data centers can purchase to protect against risk and ensure maximum protection. 

Behind the Scenes: The Importance of Data Storage in Modern Event Venues. From rapid replays to enhanced security, smart stadiums are increasingly relying on robust data storage systems, writes Western Digital’s Brian Mallari.