US data center boom help secondary markets grow up

US data center boom help secondary markets grow up is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Due to the rise of artificial intelligence (AI) and the sustained growth in the cloud and hyperscale markets, there is a surge in demand for new data center developments in the United States. Secondary markets in the U.S. are also gaining prominence. Many investors and private equity firms are keen to seize this opportunity, aiming to participate in the trend and provide opportunities for new enterprises.

• Primary data center regions such as Northern Virginia and Phoenix leading the way, signing transactions totaling 1.6 GW and 884 MW. Secondary markets like the Northwest region signed 554 MW of new capacity in the second half of 2023.

According to JLL’s “North American Data Center H2 2023” , there is a soaring demand for new data centers in the United States, which is driven by the rise of artificial intelligence and the continued growth in the cloud and hyperscale markets. Many investors are eager to seize this opportunity.

Secondary markets are rising

According to JLL’s “North American Data Center H2 2023” report, the United States is eager to develop more new data centers due to the rise of artificial intelligence and the continued growth in the cloud and hyperscale markets. Secondary markets in the United States are also seizing the opportunity to develop themselves.

Currently, ChatGPT has grown from 100 million users per month in January 2023 to 100 million active users per week by November. This user growth is also forcing existing data center owners to readjust their facilities, squeezing every square foot per megawatt to alleviate AI’s power demands.

The significant increase in demand for new data centers in the United States has also attracted the attention of investors and private equity firms, expecting to join this trend and providing opportunities for new entrants.

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Challenge exist

While primary data center hubs such as Northern Virginia and Phoenix lead with transactions totaling 1.6 GW and 884 MW, respectively, secondary markets like the Northwest region are not far behind, witnessing the signing of contracts for 554 MW of new capacity in the latter half of 2023.