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Data Center News Roundup: Construction Market Expected to Soar, HBM Shortage in Focus
In this week’s top data center news, the construction market is expected to reach $416 billion in the next eight years, while a shortage of HBM chips might hinder the industry’s expansion.
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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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Construction Ramps Up
The global data center construction market is forecast to reach a massive $416.4 billion by 2032, almost double the $216.6 billion it was valued at last year, according to a new report from Allied Market Research.
“As digital transformation accelerates across industries across the globe, fueled by the proliferation of mobile devices, rise in internet penetration, and adoption of cloud-based applications, there is a huge demand for robust infrastructure capable of handling vast amounts of data,” the report outlined.
“Hyperscalers and colocation providers are expanding into new locations to serve increasing local markets. This regional diversity necessitates the establishment of data centers in important places around the world.”
In another industry report this week, global real estate consultancy JLL said it predicts the edge data center market will be worth $317 billion globally by 2026, more than double the $153 billion valuation in 2020.
“Globally, the growth of edge computing will be influenced by not only the emergence of several technology-based megatrends but also the need for faster data transfer and high computation, as well as factors such as policies and regulations,” the report said.
New Data Center Developments
On the topic of construction, this week saw the announcement of several high-profile data center developments. In the US, Stonepeak formed a joint venture with American Tower to construct a new data center in Denver, Colorado.
The 18 MW DE3 facility will be constructed on a modular basis over three 6 MW phases at a total estimated cost of $250 million. Once complete, the campus will be operated by American Tower subsidiary CoreSite.
Elsewhere, Texas-based Data Journey acquired the former Bed Bath & Beyond data center in North Carolina’s Catawba County, where its onsite team converted the building from a purpose-built enterprise data center into a colocation facility.
In Latin America, Cirion acquired a 15,000 sq m parcel of land next to its existing data center in Rio de Janeiro, Brazil, to support the expansion of its operations in the region.
The new parcel of land will support a 60 MW carrier-neutral data center, RIO2.
In Asia, meanwhile, CtrlS acquired a new land parcel in Patna, India, for a 10 MW data center, while BDx launched the first phase of its 500 MW facility in Jatiluhur, Indonesia.
Vantage Data Centers broke ground on KUL2, its second Cyberjaya campus in Malaysia, and Macquarie Asset Management agreed to acquire the Hanam Data Centre located in the Greater Seoul Area of South Korea, for around $530 million.
For more of the latest data center developments around the world, check out our August roundup.
HBM Shortage
This week, Data Center Knowledge writer Andy Patrizio examined a new challenge in the tech hardware supply chain: the shortage of high-bandwidth memory (HBM) chips.
HBM provides crucial speed and latency benefits by being directly integrated with GPU packages. However, the production complexity and cost make scaling up production difficult.
Despite these challenges, data center construction continues, with Omdia projecting 37.7 million sq ft and 6 GW of new capacity by 2024.
For a deeper dive into the challenges posed by the HBM shortage and its impact on data centers, read the full article.
DCW Insights
And finally, with the dust now settled on this year’s Data Center World conference, we look back to some highlights from the Data Center Knowledge news desk.
Analysts and experts examined hardware limitations, emerging opportunities, and major trends. A significant focus was on AI’s dual role: driving high energy demand while enabling data centers to optimize performance and efficiency.
Learn what the experts have to say about all this and more in our video recap.
Other Great Reads in DCK This Week
Protecting Data Center Networks Against Subsea Cable Disasters. Data centers face ongoing threats from subsea cable failures. Discover how the industry can protect networks and ensure continuity despite these disruptions.
10 Possibilities for the Data Center of the Future. What does the data center of the future look like? Explore innovative solutions that could address the industry’s space and sustainability challenges.
Big 3 Cloud Providers Eye Future Growth Beyond AI as Cloud Adoption Surges. AWS, Microsoft, and Google are still singing the praises of AI, but that's not the only reason why the cloud continues to grow.
Malaysia Sets Up Chip Design Hub to Boost Semiconductor Industry. The Southeast Asian nation is seeking to improve its chip design capabilities and move up from testing and packing.
Best Practices for Planning and Deploying Modular Data Centers. This guide details modular data center best practices to help optimize the way organizations acquire and use modular builds.
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