2024’s Biggest Data Center Construction Stories: A Year in Review

he AI tidal wave drove explosive growth in data center construction in 2024, with the industry nearly doubling in size since 2020. Yet while opportunities abound, the industry is grappling with myriad challenges.

It was almost impossible to keep up with the seemingly endless stream of new data center developments. However, this past year also brought extreme weather, land shortages, and environmental concerns, along with community issues relating to local construction projects.

These challenges have required data center companies to think outside the box when it comes to site selection and building methods.

Our top 10 data center construction stories of 2024 highlight major global investments, sustainable building innovations, AI-driven hyperscale demand, creative solutions to land shortages, and financing strategies for new builds.

1. Building Sustainable Data Centers: Innovations in Construction and Energy Use

As the demand for data centers surges, so does global energy consumption, which has industry leaders focusing on what they can do to make data center construction and operations more sustainable. Regulatory pressure in Europe is mandating that large companies reduce and report their carbon emissions. Similar measures are beginning to be explored in the US. While data centers are a major contributor to energy and water consumption, there is hope for a solution. This article explores how renewable energy sources, innovative cooling methods, and AI and machine learning are being utilized to optimize energy usage.

Related:AI Data Centers Pose Regulatory Challenge, Jeopardizing Climate Goals – Study

2. Why Communities Are Protesting Data Centers – And How the Industry Can Respond

The surge in data center demand means more people are living near data centers – and not everyone is thrilled about it. Local opposition is growing, and this has fueled anti-data center rhetoric. Protestors cite quality of life issues, environmental concerns, and fears around local government kowtowing to big tech. Data Center Knowledge contributor Christopher Tozzi writes about what data center designers and operators can do to gain more trust from the communities they enter.

3. Tracking the Explosive Growth of India’s Data Center Market

This year, India emerged as one of the fastest growing data center markets. India’s government has encouraged this growth through tax incentives, land and power subsidies, and supportive regulatory policy. This article explores the strengths of India’s data center market such as its growing digital economy, well-developed fiber-optic cable network, and increased possibilities for edge computing, as well as some of the challenges that could be threats to market success.

Related:New Data Center Developments: December 2024

4. Financing for New Data Center Construction: An In-Depth Guide

Building a data center is a complicated and costly endeavor. Whether you’re planning a new build or an upgrade to an existing data center, Data Center Knowledge contributor Patrick Lam offers a comprehensive look at various funding options from debt finance models and loans to equity finance and future-proofing your financial investments.

5. A Look at the World’s First Data Center in an Active Mine

In October, construction began on ‘Intacture,’ which is claimed to be the first data center in an active mine. The facility is set to come online in 2026. We got a sneak peak inside.

6. Equinix Data Center Expansion Continues as Hyperscale, AI Demand Persists

Data center giant Equinix reported increased revenues this year, fueled in large part by soaring demand for AI workloads. The company has quickly established itself as a leader in the hyperscale market with its xScale program, which is expanding to meet global demand. Data Center Knowledge writer Sean Michael Kerner explores how Equinix is expanding its operations in response to the AI boom.

Related:Foxconn on Track to Become the World’s Largest Server Vendor – Omdia

7. Data Centers Push into New Territories in Pursuit of Energy, Space

Regions with high concentrations of data centers, like Northern Virginia and California, are running out of land, power, and water. This migration has developers taking a closer look at site selection. This article highlights the benefits and challenges data center developers and operators must consider when planning a build outside existing market hot spots.

8. Unlocking Efficiency: The Advantages of Multi-Story Data Centers

Multi-story data centers are becoming more common thanks to their efficient use of space, lower price tags, and improved sustainability. However, they also pose a unique set of challenges.

9. Data Center Construction Trends: Build Fast, Build Smart

Data Center Knowledge contributor Sandra MacGregor shares what data center construction experts had to say ahead of this year’s Data Center World conference. As construction demand reached new highs in 2024, the urgency to build more data centers was met with challenges from a labor-constrained market. The result was an emphasis on speedy and efficient construction, prefabrication, the need for sustainable building materials, and innovative cooling methods.

10. What the New UK Government Means for the Country’s Data Center Sector

A day after the UK’s July 4 election, writer Graeme Burton took a deep dive into what the newly elected Labour Party has in store for the nation’s digital infrastructure sector. Key issues include building planning regulations, renewed data security efforts, and upgrading national digital infrastructure.