Data Center News Roundup: Blackstone Launches UK Venture, Exploring the Industry’s Power Problem

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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Movers and Shakers

Blackstone led the charge in this week’s raft of new data center developments, with the private equity firm confirming it will invest £10 billion (around $13 billion) in a new AI-ready facility in Northumberland, UK.

The deal will see the construction of the “biggest AI data center in Europe,” with more than 4,000 jobs being created through the venture.

Prime Minister Keir Starmer said: “New investment such as the one we’ve announced with Blackstone … is a huge vote of confidence in the UK and it proves that Britain is back as a major player on the global stage and we’re open for business.”

The news follows Blackstone’s confirmation earlier this month that it will buy Australian data center firm AirTrunk in a $16 billion deal.

In other data center developments this week:

Related:New Data Center Developments: September 2024

Critical Thinking

Staying in the UK, Data Center Knowledge writer Graeme Burton took a closer look at the country’s recent announcement that it will designate data centers as critical national infrastructure.

According to the UK government, the new designation will result in a dedicated team of senior government officials who will monitor and anticipate potential threats, provide prioritized access to security agencies, and coordinate access to emergency services should an incident occur.

“This is not an overnight decision but the result of years of careful consideration … where a dedicated team has worked closely with operators to understand the operational and market characteristics of the sector,” said Emma Fryer, director of public policy for CyrusOne in Europe.

Related:How Utilities, Hyperscalers Are Working to Tackle ‘Extreme’ Data Center Power Demands

Check out the full article to find out what industry experts think this move will mean for the future of the sector, including its potential benefits and challenges.

Power Play

As AI drives unprecedented growth in data center energy consumption, utilities and hyperscalers are locked in an uneasy, sometimes adversarial partnership to expand capacity.

To gain a better understanding of the situation on the ground, Data Center Knowledge spoke with technology infrastructure experts about the challenges, opportunities, and unanswered questions facing the industry, as well as the “complex mix” of strategies and technologies required to ensure the grid can meet escalating demand.

Whether it’s enhancing renewable energy capacity, streamlining regulatory frameworks, or investing in cutting-edge solutions like small modular reactors, the industry is at a pivotal moment.

Industry pros including David Porter from EPRI and Cormac Nevins from Echelon Data Centres say there’s no single solution – it’s about a complex mix of technology and collaboration to meet escalating energy needs.

How do you see the energy grid evolving to support future data growth? Read more

APAC Insights

And finally, the Asia-Pacific data center market is booming. According to the latest insight from Cushman & Wakefield, Asia’s data center market neared 12 GW in operational capacity during H1 2024, driven by 1.3 GW in additional supply during the period.

Related:Mapping the Best Data Center Locations in 2024

Demand is keeping pace with supply, indicating a robust growth trajectory. The development pipeline is at 4.2 GW under construction and a further 12 GW in the planning stages.

Top markets like Mainland China, Japan, India, and Australia continue to dominate, but Malaysia stands out with an 80% growth in operational capacity, largely driven by Johor. India, with a 28% increase, also remains a key player. Despite regulatory hurdles, even smaller markets like South Korea and Hong Kong are seeing a steady uptick.

With substantial investments in cloud services and colocation underway, expect Japan, India, and Australia to hit record growth. On the horizon are significant policy shifts aimed at increasing energy efficiency and lowering carbon footprints. How will this rapid growth shape the future of APAC’s data centers? Read more

Other Great Reads in DCK This Week

Bitcoin Miners: The New Power Backbone of AI Data Centers. Cryptocurrency miners are pivoting to AI data center operations. While this transition offers numerous opportunities, it also presents some challenges, writes Rosanne Kincaid-Smith, group COO at Northern Data.

Industry Experts Look to the Future of Data Center Design at Yotta 2024. Yotta 2024 will explore the pressing challenges shaping the future of AI, compute, and power, and how data centers must respond to shifting demands.

AI Market Will Surge to Near $1 Trillion by 2027 – Bain. Global AI growth is driving massive demand for data centers, putting pressure on supply chains and sparking concerns over chip shortages.

Beyond CSR: How Data Centers Can Keep Up with Rising ESG Regulations. With ESG regulations tightening, data centers must go beyond CSR to meet mandatory sustainability goals, writes Steve Lewis.

Navigating the IPv6 Transition: Lessons from the ‘World’s Fastest Temporary Network’ Angie Asmus, SCinet chair for this year's SC Conference, offers guidance on transitioning networks to IPv6.

Multi-Tenant and Cross-Tenant Threats in Google Cloud and Beyond. The cloudification of workloads is giving rise to new data exfiltration paths. We detail two of these threats – and assess a new Google Cloud feature that hopes to strengthen tenant restrictions.