Datacenter Management Practices

Increasing both the capacity and number of data centers is fundamental to the growth of AI, but they have become a lightning rod for criticism from local residents and politicians alike as they are causing higher energy prices and using scarce water resources in a growing number of regions globally. On a recent episode of the Bloomberg Switched on Podcast, Tom Rowlands-Rees and Lloyd Arnold, BloombergNEF's Global Power Analyst and Data Center Analyst, respectively, discussed “What Really Determines Where Data Centers Get Built”. The decision about where to site data centers is becoming more complex, with decision makers having to factor in energy & water availability and cost, as well as land permitting. However, other criteria are becoming more important, including taxes, fiber connectivity, and existing ecosystems, which are impacting competitiveness, given that tech companies remain focused on sustainability and net zero initiatives. Key takeaways from the podcast include: · Power constraints are now the biggest bottleneck - Many regions face grid congestion, long interconnection queues, and rising competition for electricity from AI, electrification, and industrial loads. Access to reliable, low‑carbon power is becoming a decisive factor in site selection. · Regional competitiveness is diverging - Markets with streamlined permitting, strong renewable‑energy pipelines, and supportive policy frameworks are pulling ahead. Others are struggling with regulatory complexity, land scarcity, or slow infrastructure build‑out. · Construction timelines are lengthening - Supply‑chain pressures, skilled‑labor shortages, and stricter environmental reviews are extending development cycles. Speed to market is becoming a differentiator — and a challenge. · Geopolitics and resilience matter more than ever - Operators are diversifying locations to reduce exposure to geopolitical risk, extreme weather, and single‑grid dependency. Redundancy is becoming a strategic asset. · Permitting and land availability remain major hurdles in dense metros, pushing operators toward secondary markets. · AI workloads are reshaping design, driving higher rack densities[JB1] , new cooling strategies, and unprecedented energy demand forecasts. · Sustainability pressures are rising, with operators expected to prove real emissions reductions, not just offsets. Data center growth will continue, although some regions will be slower due to the challenges mentioned above. However, with so much capital being invested into the AI sector, we should expect that data center hyperscalers will be willing to overpay for the power and water needed to start the permitting and building process.      Listen on Apple Podcasts: https://lnkd.in/gSw5GwKM #ai; #datacenters; #hyperscalers; #renewableenergy; EcoTech Capital Cy Obert Jeffrey Lipton

Grids are a bottleneck for data centers. Data centers are a challenge for grids. But is there a win-win solution? Multiple European governments have recently stepped up to attract data center investments and, at the same time, reduce their potentially negative impacts on energy markets and infrastructure. To name a few examples: ▶️ UK: AI Growth Zones. I covered these in previous posts, it’s a flagship program that marries power demand and supply, optimizing grid usage and offering multiple incentives for developers ▶️ France: EDF is offering data center sites. 2 GW of grid-connected sites, ready to use, with an electricity supply offer included ▶️ Germany: National data center strategy published 2 weeks ago. Improving grid connection procedures and data availability, promoting flexible connection agreements. But also pushing for better efficiency and clean power supply. ▶️ Ireland: Introducing Green Energy Parks as part of the Large Energy User Action Plan, incentivizing co-location of data centers, renewables and storage ▶️ Spain and Portugal: expanding flagship hubs like Aragon and Start Campus with ~100% renewable power supply (also on-site), plus launching demand tenders ▶️ Italy: passing decree 21/2026 streamlining data center permitting and grid connection These solutions incentivize the placement of data centers close to renewables (+storage), for the cleanest and cheapest power supply, minimum impact on national power grids, and quickest deployment times. A win-win for developers, grid operators and governments. Or am I too optimistic? More on grids and data centers in tomorrow’s newsletter.

Most people think data center site selection is about proximity to fiber and population centers. That was true 5 years ago. It's not true anymore. Here's what actually matters now: Power availability. Full stop. We've walked away from sites with perfect fiber, perfect location, perfect everything. Because the utility couldn't deliver power in a reasonable timeline. And we've pursued sites in the middle of nowhere. Because the utility had capacity and could move fast. The math has completely flipped. Proximity to end users matters less when you can build fiber. Proximity to talent matters less when you can operate remotely. Proximity to power generation matters more than anything else. Here's what we look for now: Utilities with excess generation capacity or clear path to new generation (Hint: Sometimes you have to create your own path). Regions with natural gas pipeline infrastructure already in place. Sites near existing substations with available capacity. Regulatory environments that move fast on interconnection approvals. Everything else is secondary. The crazy thing is: This is creating opportunities in places nobody's looking. While everyone's fighting over Northern Virginia and Silicon Valley, there are regions with abundant power that nobody's paying attention to. The data center map is about to get redrawn. And it's going to be drawn by power availability, not proximity to users. *Here's a picture of my favorite beach for those in colder climates 😊 *

Almost everyone talks about AI, density, and the next generation of compute. Very few people are talking about where these future data centers will actually live and why location strategy may become just as important as the technology itself. As AI workloads continue pushing power and cooling demands higher, I think the next evolution of data centers will be driven by a combination of • Access to large power capacity • Reliable water or alternative cooling strategies • Lower environmental risk • Fiber density and connectivity • Renewable energy availability • Speed to deploy and scale Some future concepts that are technically realistic 🌊 Offshore or coastal data center campuses for natural cooling opportunities 🌵 Desert campuses using closed loop liquid cooling and solar integration 🌽 Modular edge campuses near population growth corridors ⚡ Nuclear supported or energy adjacent campuses for long term power stability 🏭 Prefabricated micro campuses designed for rapid deployment Potential regions that stand out Arizona – solar, land availability, continued hyperscale growth Texas – power infrastructure and large scale expansion opportunities Virginia – fiber density and existing ecosystem Nevada – land and renewable energy potential Washington and Oregon – cooler climates and hydro resources Midwest regions – central location and available expansion space The future of data centers may not simply be bigger facilities. It may be smarter placement, stronger infrastructure strategy, and building around long term sustainability. Curious where others think the next major wave of data center growth happens. #DataCenters #AIInfrastructure #DigitalInfrastructure #EdgeComputing #Hyperscale #Telecom #CloudComputing #FutureTech #Infrastructure #DataCenterDesign

🇮🇳 India’s Data Centre Growth – Snapshot Current capacity: ~1.2 GW Projected by 2030: ~5 GW Required Investment: ~USD 22 billion (Source: Colliers India) Current Hubs: Mumbai, Chennai, Delhi-NCR Emerging Hubs: Hyderabad, Coimbatore, Pune, Ahmedabad --- 🚀 Drivers of Growth AI and Generative AI Workloads Cloud and Edge Computing 5G rollout and IoT expansion Digital India push (e-governance, UPI, ONDC, etc.) Data localization mandates (DPDP Act 2023) Hyperscale demand from global tech giants --- 🧠 Strategic Advice for Stakeholders 1. Investors & Developers Diversify Geography: Mumbai is saturated; invest early in Hyderabad, Coimbatore, Pune, and Kolkata where land and power are still affordable. Colocation vs Hyperscale: Develop flexible colocation models catering to Tier-II startups and enterprises alongside hyperscale modules for cloud majors (AWS, Azure, Google). Green Data Centres: Focus on renewables, waste heat recovery, and AI-powered cooling to reduce OPEX and meet ESG commitments. Land Banking Now: Acquire land near RE power corridors or upcoming substations to mitigate future access and regulatory delays. 2. Power Infrastructure & Utility Players Build Dedicated Power Corridors: Ensure redundant and resilient grids with Tier IV reliability. Explore Captive RE Models: Enable direct RE connectivity (solar/wind farms in Gujarat, Rajasthan, Karnataka). Battery Storage Systems: Plan early for BESS (Battery Energy Storage Systems) to manage grid stability for AI workloads. 3. Government & Urban Planners Single Window Clearances: Fast-track environmental, zoning, and connectivity clearances. PPP Models for Tier-II Cities: Offer plug-and-play data centre parks with built-in utilities and dark fibre. Skill Development: Launch skilling hubs in electrical, mechanical, BMS, IT, and HVAC specific to data centres. 4. Telecom & Connectivity Providers Expand Redundant Fibre Rings: Enable low-latency links for AI and real-time analytics demands. Edge Data Centre Networks: Invest in micro data centres closer to users, especially in Tier-II/III towns. --- 🏗️ Big Players Making Moves AdaniConneX (Adani + EdgeConneX JV): Planning 1 GW across India, including Chennai, Noida, Hyderabad. Reliance Jio: Investing heavily in cloud + AI infrastructure, with new green data centre parks expected. NTT, STT GDC India, CtrlS, Web Werks, Sify: All expanding footprint or forming RE-linked data centre clusters. --- ⚡ Key Challenge: Power Availability & Reliability AI workloads may require up to 5–10x more power per rack Grid capacity expansion is not keeping pace in some regions. Developers should consider on-site substations, gas-based backup generation, or green open access models.

The AI boom is a "build-out moment." For investors and data center developers, the choices made this decade will determine if AI accelerates climate progress or becomes an unsustainable burden. With data center energy use projected to double or quadruple by 2030, sustainability is now a core risk-mitigation strategy. To future-proof your portfolio, here is what must be done before finalizing a location or design : Strategic Siting (Smart Siting) : - Analyze Hydrological Stress : Avoid water-scarce regions and favor areas with low water-stress profiles to minimize conflict with local communities. - Assess Grid Carbon Intensity : Prioritize locations with a clean electricity mix (nuclear, hydro, or windbelt states) and verify the availability of "additional" renewable capacity. - Evaluate Infrastructure Stability : Ensure local grids can handle high-density loads and support energy storage integration to balance intermittent renewables. Circular & Efficient Design : - Incorporate Advanced Cooling : Move beyond air cooling; liquid immersion or direct-to-chip systems can slash energy and water use by up to 50%. - Design for Circularity : Utilize "green" low-carbon concrete and steel, and adopt a "Design for Disassembly and Reuse" (DfDR) philosophy. - Mandate Heat Recovery : Plan to capture waste heat for district heating or industrial processes, transforming the facility into a community asset. - Perform a Cradle-to-Grave LCA : Conduct a full Life Cycle Assessment to account for embodied carbon, avoiding "environmental burden-shifting." How are you balancing the surge in AI demand with your ESG commitments? Let’s discuss in the comments. #SustainableComputing #DataCenterInvesting #GreenTech #AIInfrastructure #CircularEconomy

𝙋𝙤𝙬𝙚𝙧 𝙝𝙖𝙨 𝙧𝙚𝙥𝙡𝙖𝙘𝙚𝙙 𝙛𝙞𝙗𝙚𝙧 𝙖𝙣𝙙 𝙢𝙚𝙩𝙧𝙤 𝙥𝙧𝙤𝙭𝙞𝙢𝙞𝙩𝙮 𝙖𝙨 𝙩𝙝𝙚 #𝟭 𝙨𝙞𝙩𝙚 𝙨𝙚𝙡𝙚𝙘𝙩𝙞𝙤𝙣 𝙙𝙧𝙞𝙫𝙚𝙧. Most teams have not adjusted. For two decades, site selection started with fiber routes, latency, and incentives. Power was a check box. In 2026, power is the constraint. It dictates timeline, cost, and viability. Everything else is secondary. JLL is projecting average global build cost at $11.3M per MW for 2026, up from $7.7M in 2020. That delta is not general inflation. It is interconnection scarcity showing up in capex. What is actually happening in the field right now: • Sites with existing substations near retiring coal or industrial loads are commanding premiums. You are buying time, not just land. • Behind-the-meter natural gas is no longer a temporary bridge. It is the primary path when grid timelines exceed 3 to 5 years. • Operators willing to run hybrid power strategies are beating “wait-for-grid” models on speed to market. That gap is widening. If your deck still leads with fiber maps, you are optimizing the wrong variable. Lead with megawatts, queue position, and time-to-energize. Then design network, cooling, and tax strategy around that reality. Board-level translation: Power access is now the gating factor for revenue realization. Miss it and nothing else matters. What is the first question your team asks on a new site today: power or latency? #DataCenters #AIInfrastructure #SiteSelection #RoyaleStakes

Most people analyze data centers like real estate. That is the mistake. After reviewing projects across the U.S., Europe, the Middle East, and Asia, one pattern keeps repeating. About 20 percent of variables explain 80 percent of outcomes. And those variables are not what most people focus on. The five that matter most are: 1. Power first. A data center is a machine that converts electricity into compute. No reliable power, no economic project. 2. Land control next. Not acreage, but control. Zoning certainty, expansion rights, water access, and fiber proximity determine whether a site becomes a long-term campus or a stranded asset. 3. Then capital. These are front-loaded projects. Impatient equity or unrealistic debt timelines can sink even strong projects. 4. Demand matters, but differently. Forecasts do not finance infrastructure. Contracts do. AI drives demand, but also volatility between training clusters and distributed inference. 5. Finally, sequencing. Discipline here separates winners from losers. The correct order is clear. Reverse it, and risk compounds. Underwrite power pathways and capital alignment before square footage. That is where the real returns come from. The winners are the ones who see the signals others ignore. Infrastructure strategy is not about buildings, It is about timing, control, and certainty. Read the article below. #datacenters

Site selection decisions made today will determine your competitiveness for the next 20 years. The old playbook focused on finding the cheapest location with enough labor. That approach no longer works. The companies getting site selection right in 2025 are asking completely different questions than they were five years ago. Power has become the primary constraint. What used to take two years or less for electrical upgrades can now take eight years for manufacturers needing 10MW or more. Data centers and factories are competing for the same limited supply, and what were once regional shortages are now nationwide. If your facility requires significant power, your timeline for becoming operational just extended by years. Talent trumps cost, every time. Chasing low-cost geographies made sense when labor was abundant everywhere. It no longer is. Talent shortages are not going away, and competition in cheap markets erodes whatever cost advantage you thought you had. Companies are now prioritizing quality of life and community appeal because that is what attracts and retains the skilled workforce advanced manufacturing requires. Sites near universities, within commuting distance of diverse talent pools, and in communities people actually want to live in are commanding premiums for a reason. Incentives will not save a bad location. Incentives have become a shiny object. They come with strict requirements, and quality sites in desirable areas that meet those requirements are scarce. Too many companies have learned the hard way that eligible properties often do not match what they actually need operationally. Incentives should be treated as an extra benefit, not the primary decision driver. Brownfield is no longer the default. For years, companies favored refurbished facilities for speed and to comply with federal initiatives. Most viable brownfield sites have now been picked over, and refurbishing what remains is often more expensive than building new on greenfield sites. First-generation industrial facilities with a clear pathway to power, or ground-up development on industrial-zoned land, are becoming the smarter play. The real shift: strategic value over short-term savings. The cost of getting this wrong is not just financial. It shows up in your ability to recruit talent, scale operations, adapt to market changes, and stay competitive as technology evolves. A location that saves money upfront but cannot attract the engineers and technicians you need is not a bargain. Site selection used to be a real estate decision. Now it is a business strategy decision that requires understanding workforce dynamics, infrastructure timelines, community alignment, and long-term operational flexibility. If your organization is evaluating a new facility or expansion, the questions worth asking are no longer just about cost per square foot. They are about whether this location positions you to compete, adapt, and grow for the next two decades.