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Widespread, data centers of data processing have become as main suburb in some places as shopping centers and football fields. However if Microsoft pulled the plug In the planned data centers in Ohio last month, he added questions about whether the data center was charged. Report Wells Fargo last Monday Saying some data centers planned in Amazon Web Services have been revised to market anxiety.
But the bust may have ended before it started. And if anything, the “pause” in some projects of data centers are in the cost of costs that remain strong.
“We still see the accelerated scaling of AI Data AI deployment in the marketing centers, with strong demand signals as ours and long-term growth,” said Jordan Albertatsi, CEO of data centers in Ohio in Ohio Verb According to the deduction of the earnings last week. Its total ended by 22%.
Amazon and Nvidia both confirmed last week that the market of data centers remains strong.
“There were actually no significant changes,” said Kevin Miller, Vice President of Amazon Global Data Data Desaters, at a conference organized by the Hamm American Energy Institute. “We still see very strong demand, and we are looking for both in the next couple of years and in the long run and we see that the numbers are only increasing.”
This does not mean that strategic thinking is about how, where and when to spend accurately, it does not change, because the AI market is developing and breakthroughs need to be digested. Six weeks this year in China, the scene came on stage, it was announced that President Trump at $ 500 billion, which operates in StarGate markets, and concern about tariffs and trade wars.
“All this created a scenario when the CBRE solution CBRE solutions CBRE solutions are paused at the Center for Commercial Real Estate Center processing centers,” Pat Lynch said. “I think this is a temporary pause,” Lynch added, noting that the project pipeline and its funnel remain significant, and CBRE continues to execute transactions. “I remain cautiously optimistic for the future demand, especially if you think of great AI training models,” Lynch said.
Microsoft has promised $ 1 billion in data center in Ohio in the same area where Intel planned chips, but the term slowed down.
“After careful consideration, we will not move forward with our plans to build data centers on Licking County sites. We will continue to evaluate these sites in accordance with our investment strategy,” Microsoft press said in a CNBC statement.
In the UBS report, since last week, they concluded that among all possible explanations of the cancellation centers of data, most likely Microsoft overcame AI RUSH, and now entered zero projects that currently make the most. It noted that the rented Capex Microsoft increased by 6.7 times in two years, and the rental commitments amounted to approximately $ 175 billion. “Microsoft has acquired as much available rental processing power as possible in 2022-2024, and now has the visibility of eliminating some of these” early-stage projects, “-writing UBS.” We find the least support for “lull demand”,-the report added.
Anat Ashkenazi, Alphabet Financial Director described in the environment at the request of the cloud as “close” after Its last salary Thursday. “We could see the variability of the growth rate in the cloud, depending on the deployment of power every quarter,” she said. “We are waiting for a relatively higher power deployment by the end of 2025.”
“We do not see the retreat from demand, but strategic redistribution,” said John Karafiel, co-chairman of BGO, a global real estate investment manager, which has $ 83 billion assets, including a significant portfolio of data centers. The most significant players, he said, are not distracted when Microsoft, Google, Meta and Amazon plan to spend more than $ 300 billion in Capex this year, tied to AI infrastructure. And, he says, it doesn’t include other major players such as Openai and Oracle, both participates in the Stargate project.
“Instead of the bust, it is a reshuffle of the deck in the environment, when the authorities, in particular, along with fiber, water and soil, are scarce and strategic,” Karapil said. Long -term acceptance of enterprises will lead to demand for II and demand at the data center for the next decade. “We are not in the first submission,” he said.
Power is a life source of data centersBut data centers do not work with connection and reproduction that require a large amount of electricity for computing and fans to keep the infrastructure cool. Because the generative acceptance of the II goes from an early experiment for the application for businesses, the need for low delay, high -efficiency data centers closer to end users, but it will take time to make the correct set of data expected.
“New data centers are increasing in size so sharply that the network cannot keep up,” said Alan Shur, Chief Commercial Director of Micro -Developer Enchanted Rock. Three years ago, a large data center was 60 megawatts – enough power to put 20,000 houses, but now it says new data centers to support all the use of artificial intelligence are asked for 500 megawatts or more.
This rapid increase in electricity usage is on the new demand from the production and electrification of transportation, which weigh together on supplies and infrastructure. Data processing centers create a unique task for utilities that should provide food to all customers, even during peak demand. “That is why some utilities quote long expectations of the relationship between data centers,” Schur said. “Utilities should invest in new substations, and may also need to expand the transmission and generation, and all it takes time,” he added.
CBRE has seen that data centers are transferred from 2% of their portfolio in 2022 to 10% in 2024, and Lynch expects to continue to grow and the proximity of the power is moving the current market, as builders of data centers are looking for access areas. Georgia, Texas and Ohio check the many boxes looking for builders, and if there is no network and infrastructure in the area, it should scale quickly.
“The availability of the power availability inside 36 months is attractive to customers,” Lynch said.
Three percentage of electricity in the world is now linked at the data center, Datacenters.com reports.
Shur said the enchanted rock data show that there is a lot of effort to meet the demand – most of the time. With 8 760 hours a year, the network is only under the tension for their share. “If we can facilitate the demand for the network for those who from 100 to 500 hours, long relationship delays can be reduced,” he said.
According to McKinsey and Pankaj Sachdeva, which studies the development of centers of processing centers of processing centers design centers of processing centers design centers, and, according to the older partner Pankaj Sachdeva, an important difference between the idea of a broader slower and some of the latest technology companies may be made.
Based on the recent Makkins modeling, which does not include tariff impact, the market of data centers is expected to grow in the range of 20% -25% over the next five years, but from year to year there will be variations of growth. “It won’t be linearly,” he said.
Tariff changes will introduce new pressure on the cost of AI supplies and data centers, especially with critical mineral tariffs on the horizon.
“These violations will increase the cost of equipment, affect the search strategy and require businesses to rethink their long-term procurement models,” said John Archer, the senior leader in Slalom Consulting. In the short term, AI and cloud suppliers will have to implement costs reduced strategies such as negotiating that interconnect suppliers and inventory contracts.
“Longer, impetus for geographical diversification, joint production in tariff regions and deeper integration of AI supply chains that can be adapted to trade policy development,” Archer said.
One of the factors that has not changed is that the computing power is currently expensive, and much more is needed for AI software and equipment, according to Soresh Venkathene, CEO Poet Technologies, a company that develops energy solutions for data centers. “The blast in the II calls the data center to find more efficient solutions because AI requires calculating power in such a volume that it is unlike everything we witnessed,” he said. “Although one data project center can get on the wall, the other may occur because there is no signs of slowdown on the connection,” he added.
