Data Center News Roundup: Gartner Predicts Growth, Denmark Opens AI Supercomputer

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. 

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

Gartner Forecasts Data Center Spending to Grow in 2025

At the top of this week’s data center news, Gartner announced its latest IT market trends forecast. Of particular note, Gartner analysts project worldwide data center systems spending to surpass $367 billion in 2025, an increase of 15.5% (nearly $50 billion) from 2024.

Industry growth is driven by GenAI-related server sales, which are expected to account for over $257 billion in 2025 spending, and $332 billion by 2028.

"GenAI will easily eclipse the effects that cloud and outsourcing vendors had on previous years regarding data center systems,” said Gartner analyst John-David Lovelock. “Current spending on GenAI has been predominantly from technology companies building the supply-side infrastructure for GenAI. CIOs will begin to spend on GenAI, beyond proof-of-concept work, starting in 2025.”

Related:Data Center News Roundup: UK Investments, OCP Summit, Recent Deals

Denmark’s First AI Supercomputer

On Wednesday, NVIDIA CEO Jensen Huang and King Frederik X of Denmark inaugurated Denmark’s first AI supercomputer, Gefion, at a ceremony in Copenhagen.

Gefion’s 1,528 NVIDIA H100 Tensor Core GPUs are operated by the Danish Center for AI Innovation (DCAI) and funded by the Novo Nordisk Foundation, the world’s wealthiest charitable foundation, alongside the Export and Investment Fund of Denmark.

SOURCE: NVIDIA

“Denmark recognizes that to innovate in AI, the most impactful technology of our time, it must foster a domestic AI infrastructure and ecosystem,” said Huang at the event. “The Gefion supercomputer will supercharge the scientists of Denmark with local AI computing infrastructure to drive advancements in life sciences, climate research, and quantum computing.”

In an initial pilot phase, DCAI will bring in projects from public and private organizations that seek to use AI to accelerate progress in quantum computing, computer-aided drug discovery, weather forecasting, and energy efficiency.

New Data Center Developments

Europe

In Germany, Frankfurt-based Northern Data is considering the sale of its crypto-mining unit, Peak Mining, to expand its AI solutions unit and invest in buying and developing more data centers. Following this announcement, shares of Northern Data jumped 12%.

Related:Cisco Nears Investment in CoreWeave at $23B Valuation

Nearby, Maincubes, a developer and operator of European data centers, acquired a 14-hectare plot of land in Nauen on the outskirts of Berlin. Construction is scheduled to begin in 2025, with the first data center on the ‘BER02’ campus expected to be operational by the end of 2027.

Americas

Odata (a subsidiary of Aligned Data Centers) announced plans to build two new data centers (‘DC BG02’ and ‘DC BG03’) in Cundinamarca, Bogotá, Colombia. When finished, DC BG03will be Colombia’s largest data center. Together, the facilities will deliver a capacity of 144 MW. Initial phases of construction on the two data centers are expected to be completed by the end of 2026.

In the US, NextEra Energy expressed interest in reviving its closed Duane Arnold nuclear plant in Iowa amid the rising electricity demand from data center customers.

“We are very interested in recommissioning the plant,” said NextEra CEO John Ketchum during a Wednesday earnings call.

The 600 MW plant shuttered in 2020 after its biggest customer opted to exit its power-purchase agreement and a windstorm damaged its reactor cooling towers. 

Related:Equinix Forms $15B Joint Venture with Canada Pension and GIC

Asia-Pacific

In Japan, Nvidia-backed Ubitus joined the growing list of tech and data center companies interested in the revival of nuclear power.

As the company plans for its third data center in the archipelago, it’s looking at sites in Kyoto, Shimane, and Kyushu – primarily because of the availability of nuclear power in those regions.

“Unless we have other, better, efficient and cheap energy, nuclear is still the most competitive option in terms of cost and the scale of supply,” Ubitus CEO Wesley Kuo said. “For industrial use – especially AI – they need a constant, high-capacity supply.”

Australia’s NEXTDC acquired a new data center site, ‘S7,’ in Eastern Creek outside Sydney for A$353 million. With a potential capacity of 550 MW, the S7 site covers approximately 258,000 sq m of developable land.

Singapore-based Keppel announced a partnership with Digital Decarbonization Solutions Platform to develop an 80 MW Tier III-equivalent greenfield data center campus in North Taiwan. Expected to be ready for service in 2026, the ‘Taiwan DC Campus’ will be Keppel’s first data center project in Taiwan.

For more development news, check out DCK’s monthly roundup of data center deals, builds, and investments.

Other Great Reads on DCK This Week

Tracking the Explosive Growth of India’s Data Center Market. India’s data center market is advancing rapidly. Explore the key growth drivers, emerging trends, and future outlook.

Building Sustainable Data Centers: Innovations in Construction and Energy Use. Amid soaring power demands, the data center industry is addressing sustainability challenges through innovations in green materials, adaptive reuse, and energy efficiency.

What Is Quantum Networking, and What Might It Mean for Data Centers? While not ready for prime time, the concept of quantum networking is gaining traction. Learn how it works and how it may affect data centers in the coming years.

What Is Closed-Loop Cooling, and When Should Data Centers Use It? Here's a look at the differences between open- and closed-loop cooling systems in data centers – and how the latter can improve energy efficiency.

Evolving Ransomware Threats: Why Offline Storage is Essential for Modern Data Protection. To counter rising ransomware threats, organizations must adopt a multi-faceted defense, focusing on secure storage and cybersecurity-driven backup strategies.

How CXL Technology is Shaping the Future of Data Centers. CXL technology is transforming data centers by boosting AI efficiency while cutting energy use.