AI is Driving Rapid Growth in Data Center Property Development

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Find out why the AI-centric data centers are rapidly growing and emerging as the new hot sector in commercial real estate development.

Compared to traditional data centers, such as cloud-based data storage or web services, LLM-based chatbots and other related AI systems require significantly higher amounts of computing power.”

— Formaspace

AUSTIN, TX, UNITED STATES, September 11, 2024 /EINPresswire.com/ -- Once a Niche Service Offering, AI Data Centers Emerge as a Major Player

The rapid development of artificial intelligence-powered chatbots and generative AI tools based on large language models (LLMs), such as OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude, is driving a major shift in the data center property development landscape, with hundreds of new AI data centers now planned.

Deployment of New AI Data Centers is Gaining Speed

Thanks to the rapid growth of AI, all eyes are focused on the fast-rising demand for high-throughput data centers dedicated to serving up AI-based applications.

What’s the reason for the stepped-up demand?

Mostly, it comes down to the AI applications themselves and their exceptionally intensive data processing requirements.

Compared to traditional data center offerings, such as cloud-based data storage or web services, LLM-based chatbots and other related AI systems require significantly higher amounts of computing power, both in terms of unique machine learning hardware (generally sourced from Nvidia) as well as memory usage and bandwidth.

This increased power usage is also driving up the need for increased cooling – generally exceeding the available HVAC system capacity found in legacy data centers.

Property Developers Measure Size of AI Data Centers in Gigawatts of Power Consumption

To quantify the size of these new class of data centers, property developers, investors, and brokers have adopted a new measurement unit – gigawatts of power consumption – to classify the capacity of these new AI data centers.

According to the Wall Street Journal, Microsoft, Google, and Amazon have leased over 2.4 gigawatts of capacity in North America over the past year.

They also quote a report from datacenterHawk that an additional 15 gigawatts of data center capacity are currently in the planning stage, making new data center construction a bright spot in the commercial real estate landscape.

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Julia Solodovnikova
Formaspace
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AI is Driving Rapid Growth in Data Center Property Development

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