Data Center News Roundup: US Election Reactions, Microsoft’s Wooden Data Centers

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.

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GOP Win: Early Reactions 

Donald Trump’s win in the 2024 US election has sparked some immediate responses from the data center and tech sectors.  

Michael Bellaman, president and CEO of Associated Builders and Contractors, a construction trade association, said the win was “an exciting day for our industry.” 

“ABC is optimistic about the future of America’s construction industry and the opportunities to advance policies that protect free enterprise, reduce regulatory burdens, and expand workforce development,” Bellaman said. 

Chris Orr, principal at commercial real estate firm Romans Properties, said: “What the election means for the data center industry: Bullish for the short and long term. The red tape that most likely will be cut for power generation (gas and nuclear) will open up new development opportunities.” 

Related:What a GOP Sweep of Congress Would Mean for Tech Policy

Dan Lashof, US director at the World Resources Institute, said the incoming president has a responsibility to heed the calls to address climate change with “real policies that improve Americans’ lives.” 

“There is no denying that another Trump presidency will stall national efforts to tackle the climate crisis and protect the environment, but most US state, local, and private sector leaders are committed to charging ahead,” he said. 

In terms of the impact a Trump administration might have on the AI sector, Alon Yamin, co-founder and CEO of Copyleaks, said: “If history is any indication given the unpredictable nature of his first administration, it's not so easy to say how Donald Trump’s re-election will affect the AI market. That said, given the traditional conservative framework favoring lesser regulation over more, there are a few potential outcomes. 

“For one, AI startups may be given more opportunity to establish themselves and grow in an environment with less regulation and compliance restrictions. Small companies, with no large legal or compliance teams could be able to leverage AI and be part of the AI eco-system that will not be limited to just big tech companies with deep pockets and the ability to be compliant with heavy regulation.

Related:New Data Center Developments: November 2024

Yamin added: “On the other hand, if the balance between regulation and open AI access and use is not there and there are not enough guardrails and boundaries around AI usage, there is a risk that AI can be used in an unethical way.”

It remains to be seen exactly how a new Trump presidency will play out for the US – and indeed global – technology sector. Look for the latest reactions and analysis from Data Center Knowledge early next week. 

Microsoft Builds Wooden Data Centers 

Microsoft said it is building its first wooden data centers made with superstrong ultra-lightweight wood in a bid to slash the use of steel and concrete, which are among the most significant sources of carbon emissions. 

The tech giant is conducting a study on wooden data centers at a site near a northern Virginia suburb to assess their potential in helping it achieve its ambitious climate goals. 

Microsoft isn’t the first company to experiment with wooden data centers. Last year, Vertiv launched a modular wooden data center that’s aimed at helping organizations reduce their carbon footprint and meet their sustainability goals. 

In 2019, colocation provider EcoDataCenter opened one of the world’s most sustainable data centers, EcoDataCenter 1 in Falun, Sweden. In addition to running on 100% wind and hydropower, the data center is constructed primarily out of cross-laminated timber. 

Related:Modular Data Centers: When They Work, and When They Don't

Data Center Regulation Trends 

In other news this week, we took a closer look at the myriad upcoming regulations set to impact data center operators – from new compliance rules to key takeaways from the EU’s regulatory challenges. 

The regulations include the European Union’s revised Energy Efficiency Directive (EED), which requires data center owners and operators in its 27 member countries to report data on energy and water usage, and the Digital Operational Resilience Act (DORA), which requires financial institutions to strengthen resiliency by taking measures to mitigate cyber-attacks and ensure uptime. Read the full article to learn more. 

Other Great Reads in DCK This Week 

New Data Center Developments: November 2024. We look at some of the latest data center developments announced over the past month. 

Schneider Electric Ousts CEO After Disagreements Over Strategy. In a surprise move, French industrials giant, Schneider Electric, has replaced CEO Peter Herweck with longtime executive committee member Olivier Blum. 

Assessing AI's Impact on Data Center Heating and Cooling Needs. Higher heat loads are likely to become commonplace in data centers that host AI workloads. Here, we assess the short- and long-term impacts – and potential mitigation strategies. 

Embracing AIOps: Transforming IT Operations in the Digital Age. Forrester's Carlos Casanova explores how the integration of AI into IT operations is revolutionizing the way organizations manage their technology infrastructure. 

Broadcom Advances Private Cloud Vision at VMware Explore 2024 Barcelona. VMware adds new private cloud features, including data services, enhanced networking, and generative AI services.