Data Center News Roundup: Industry May Consume 9% of US Electricity by 2030

In this week’s top data center news, research indicates a sharp increase in power demand, and the Bank of Montreal recovers from a technical hitch.

James Walker

May 31, 2024

4 Min Read
Data center news roundup

With data center news moving faster than ever, we want to make it easy for industry professionals to cut through the noise and find the most important stories of the week.

The Data Center Knowledge News Roundup brings you the latest news and developments across the data center industry – from investments and mergers to security threats and industry trends.

To keep up to date with all things data centers, subscribe to the Data Center Knowledge newsletter to get content straight to your inbox.

Surging Power Demand

Amid soaring demand for AI and cloud computing services, data centers may consume more than 9% of the electricity generated in the US by 2030.

According to a white paper published this week by the Electric Power Research Institute (EPRI), close coordination is required between data center operators and electric utilities as widespread adoption of AI tools could lead to a “step change” in power requirements.

“Data centers are one of the fastest growing industries worldwide,” the EPRI said. “Between 2017 and 2021, electricity used by Meta, Amazon, Microsoft, and Google – the main providers of commercially available cloud computing and digital services – more than doubled.

“Developing a deeper understanding of data center power needs, timing, and potential flexibilities – while assessing how they match available electric supplies and delivery constraints – can create workable solutions for all.”

Related:New Data Center Developments: May 2024

Market Watch

The landscape of data center locations is rapidly evolving, driven by technological advancements, market demands, and geopolitical considerations.

Staying on top of the latest global trends, Dominika Koncewicz, senior analyst at Omdia, pulled focus on the top data center locations of 2024.

“Identifying the best data center locations is crucial for businesses leveraging cloud computing, edge computing, artificial intelligence, and other data-intensive applications,” she said.
Unsurprisingly, Northern Virginia ranked top among the prime North American data center locations. Atlanta, Phoenix, Austin, Salt Lake City, and Hillsboro were all named as expanding markets to watch.

Check out the full article to discover the top data center locations for 2024.

New Investments

In data center construction news this week, Google has committed to making $2 billion in investments in Malaysia, including developing its first data center and a cloud facility in the country.

The data center and Google Cloud region facility will support 26,500 jobs across various sectors in the country, with the total economic impact valued at $3.2 billion, according to Malaysia’s trade ministry.

Related:What Stands in the Way of the Net-Zero Data Center?

Elsewhere in Asia, Singapore aims to increase the amount of power it allocates for data centers by as much as 35%, while South Korean South Korea eyes more nuclear and renewable power as data center demand surges.

Raxio Group, a data center company backed by global investor Meridiam Infrastructure Partners and US private equity firm Roha Group, is opening its first facility in Mozambique as part of its $290 million investment strategy in Africa.

Spanish energy firm Solaria has entered the data center market after obtaining 155 MW of capacity from grid operator, Red Eléctrica.

In a press release this week, Solaria said it has created a new subsidiary, Solaria Data Center, to help “accelerate and intensify the digital transition in Spain.”

Bank Online

Canada’s Bank of Montreal said its online banking services have been restored following a temporary outage that was reportedly due to a false alarm at one of the organization’s data centers.

On Thursday (May 30), the bank warned customers they “may not be able to access online banking” due to a technical problem. Services were restored within a few hours.

In a statement to CTV News, the bank said the service disruption was caused by a “false fire alarm” pulled at one of the bank's data centers.

“Our services have returned online, although some customers may experience delays in transactions being processed,” the bank said.

Other Great Reads on DCK This Week

Bitcoin Miners Pivot to Data Center Operations Amid AI Boom. High-capacity GPU infrastructure and a focus on efficiency are driving crypto-mining firms to embrace the AI data center trend.

Understanding the Role of Network Taps in Data Center Observability. Network taps can provide detailed visibility into network traffic. Find out if this is the right solution to enhance your data center observability profile.

Gaw Capital to Expand Data Center Portfolio in Japan. The real estate firm has acquired a property in Fuchu City, a well-established data center cluster near Tokyo.

On-Prem vs. Private Cloud: What's the Difference? Defining on-prem vs. private cloud can be tricky due to varying interpretations and implementation practices, leading to blurred lines between the two concepts.

Microsoft, Amazon, IBM Pledge to Publish AI Safety Measures for Models. Several leading technology companies pledge to publicly disclose risks posed by their AI models at AI Safety Summit.

About the Author(s)

James Walker

James Walker is the Senior Editor of Data Center Knowledge. He has more than 16 years of experience writing for business and technology publications, with a focus on translating technical issues to make them more accessible and engaging.

Before joining DCK, James was editor of The Daily Swig, an award-winning cybersecurity news website, and his work has been featured in The Times and BBC Online, among other publications. His first full-length book, HIT: Once Upon a Field, was published in 2023.

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