Market Briefings: Data Centers & Telecommunications-Market Briefings Data Centers & Telecommunications Slides

Market Briefings Data Centers & Telecommunications Slides

Pdf Summary

The market briefing dated November 13, 2024, covers current trends and outlooks in data centers and telecommunications, highlighting record absorption rates and shifting development patterns due to power availability constraints. Major markets like Northern Virginia, Silicon Valley, and Chicago remain in high demand for data center capacity, though power scarcity is driving development toward secondary cities, albeit inconsistently.<br /><br />Hyperscale data centers, primarily operated by tech giants such as Microsoft (Azure), Amazon (AWS), Google, and Oracle, are projected to see tremendous revenue growth through 2029. Azure is expected to nearly close the gap with AWS, while Oracle could surpass Google if existing growth plans hold. The surge in AI adoption is intensifying demands on data centers, increasing rack power densities up to 7-10 times prior levels, pushing innovation in cooling technology, notably liquid cooling.<br /><br />Sustainability and power reliability are focal points in engineering. Data center design is evolving to incorporate renewable energy sources, zero waste initiatives, and enhanced regulatory compliance to ensure fair power access. Modular and off-site construction methods are accelerating build times. Community involvement and partnerships with utilities are becoming critical for successful projects.<br /><br />Data centers vary broadly: Enterprise centers serve single organizations; Colocation centers lease space to multiple clients; Hyperscale centers support massive cloud workloads; and Edge centers bring compute closer to end-users to reduce latency. Design aspects emphasize security, efficient layouts, and environmental considerations like noise control and low-carbon materials.<br /><br />In telecommunications, fiber optic infrastructure underpins data center connectivity, spanning underground, aerial, and submarine cables with dark fiber offering custom network control and lit services providing managed solutions. Fiber optic technology is critical for broadband delivery and supports the escalating number of connected devices, projected to reach nearly 30 billion by 2030.<br /><br />John Pomposello, Senior VP at CBRE Network Advisory Services, leads efforts in optimizing network strategies for clients across industries, focusing on technology evaluation, cost reduction, and leveraging emerging technologies such as SDN and SD-WAN to meet future needs in data center and telecommunications infrastructure.

Keywords

data centers

telecommunications

hyperscale

Microsoft Azure

Amazon AWS

Google

Oracle

AI adoption

liquid cooling

renewable energy