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Get more market insights here:https://shorturl.at/QWTRt-----Welcome to the datacenterHawk podcast—a deep dive into the ever-evolving world of data centers and the exciting progress in hyperscale development. In this enlightening episode, join hosts Mike Netzer, VP of Sales and Marketing, and David Liggitt, President and Founder, at datacenterHawk as they unravel the complexities, trends, and future strategies shaping the industry. Whether you're a veteran insider or just beginning to explore this high-energy sector, this episode is brimming with insights that promise to elevate your understanding and keep you abreast of the latest industry developments.Understanding Hyperscale: A Definition and Its Impact We kick off with a foundational exploration into what truly constitutes "hyperscale" in today's data-driven economy. These are not just your typical data centers; they're expansive campuses with gigawatt capabilities crucial for giants like tech conglomerates, financial institutions, and government agencies. Understanding how these mammoth facilities differ from traditional colocation data centers is critical for grasping the current and future dynamics of the industry. This episode serves as your guide into this essential distinction.The Dual Strategy: Leasing vs. Building A significant portion of the discussion centers on the strategic decision-making involved in the leasing versus building of data centers. Historically known for constructing their own massive sites, hyperscale companies are increasingly shifting towards leasing—a trend shift that's gained momentum since 2017. With leasing becoming the prevalent approach by 2022, this decision dynamic is driven by the complexities of demand forecasting and capacity planning. Our hosts delve into the anticipated equilibrium that companies might strike in the coming years between these two strategies, providing listeners with keen predictions and insights.Geographical Shifts and Market Expansion As the hyperscale beast grows, so does its geographical appetite. Mike and David probe into the emerging data center markets across the United States, beyond the traditional hubs like Northern Virginia. The expansion into areas with more favorable power availability marks a strategic pivot that reflects the industry's robust growth and expansion ambitions. This segment shines a light on the careful planning and strategic thinking that fuel these market shifts, opening new avenues for future development.Challenges and Opportunities in the Hyperscale Space Navigating new terrains comes with its own set of hurdles, and the podcast doesn't shy away from these realities. The complexities of labor markets, logistical challenges, and the uncertainties of venturing beyond established hubs are dissected with precision. Yet, within these challenges lie amazing opportunities for investors and service providers to align with hyperscale expansion needs. This discussion equips listeners with the knowledge to foresee and embrace these opportunities within the rapidly evolving landscape.In conclusion, the hyperscale transformation is a powerful testament to the data center industry's rapid expansion and adaptation. As these giants continue their formidable growth, staying informed about the latest trends is non-negotiable for anyone in the space. The Data Center Hawk podcast offers expert analysis and deep dives to empower you with the tools you need to thrive. Whether you're looking to invest, provide services, or simply stay ahead of the curve, this episode is a rich resource, propelling you toward success in the vibrant world of data centers.
Get more market insights here:https://shorturl.at/QWTRt-----Navigating the Latin American Data Center: A Closer Look at Santiago, ChileWelcome back to another episode of our Latin American Podcasts where we explore the intricacies of data center real estate and investments. Steve Sasse and Daniel Correia discuss Santiago, Chile—a major player in Latin America's data center market. Santiago’s Growing Data Center MarketSantiago is Latin America's second-largest data center hub, with a staggering 300MW of conditioned power across colocation and self-built facilities. The city has an additional 50MW under construction and 200MW in the pipeline, solidifying its role as a regional leader. Chile’s robust communications infrastructure, stable regulatory environment, and abundant renewable energy sources make it an attractive destination for major industry players like Google, Amazon, and Microsoft. These companies are expanding rapidly in the region, drawn by strong fiber connectivity and favorable business policies. Opportunities and Challenges for InvestorsWhile Santiago offers numerous advantages, potential investors should be prepared for challenges, particularly with permit acquisition, which can take up to two years. Land and energy costs in Santiago are higher compared to Sao Paulo but remain competitive within the region. On the upside, Chile’s transition from coal to renewable energy sources like hydropower, wind, and solar is a significant factor for sustainability-focused investors. Additionally, the announcement of a new submarine cable system linking Santiago with Australia is set to enhance latency between Latin America and the Asia Pacific, further boosting the city’s appeal. Future Outlook for SantiagoEfforts to improve inter-regional connectivity, such as fiber connections linking Santiago to Buenos Aires and Sao Paulo, will further strengthen its position as a digital hub. Despite geographical challenges posed by the Andes and Amazon jungle, Santiago continues to thrive as a critical player in Latin America’s digital economy. We predict sustained growth over the next 3 to 5 years, driven by hyperscale interest and the regional expansion of cloud and AI services. Stay tuned for our next episode, where we’ll take a closer look at Mexico’s data center market!
Get more market insights here:https://shorturl.at/QWTRtLinks to our other videos talking more about different deal structures:https://www.youtube.com/watch?v=pt4hMec2LbMhttps://www.youtube.com/watch?v=ZOlZVLgrMNI-----Ed Socia, Insight Director of North America at datacenterHawk, together with Montana Myer, Senior Insight Analyst, took us through an invaluable journey in the third episode of our North American regional podcast. With the aim of enhancing decision-making around data centers, we discussed upcoming opportunities in North America and the changing dynamics of deal structures in the data center market.Decoding Deal Structures In the evolving North American data market, deal structures play a critical role in shaping agreements between parties. These structures outline terms such as lease durations, pricing models, and flexibility, which are especially important in colocation leases. Understanding the nuances of deal structures helps businesses navigate negotiations more effectively and align agreements with their operational needs.Unraveling the Traditional to the EmergingIn the conventional data center lease market, the most prevalent deal structure has been the modified gross type. This essentially includes an agreed asking rate between the provider and the tenant plus a monthly energy cost. However, as Montana pointed out, there seems to be a shift taking place within the market. The emergence of new deal structures is a notable area of exploration.Navigating the Shift in Deal StructuresDiving deeper into understanding this shift in deal structures, it becomes clear that the market is heading for more sophisticated models. We are starting to see more shell deals and yields on cost being signed, pointing towards an emerging trend.Opportunities on the HorizonAs these new trends take shape in the market, it makes one ponder about the potential opportunities this shift could bring. As evident from our discussion, there appears to be a rising number of opportunities presenting themselves as the data center market continues to evolve.In conclusion, we at datacenterHawk are committed to providing you with the most insightful trends and knowledge in the data center real estate market. Our platform, backed by an experienced team, is designed to provide you with the data center real estate intelligence you need to make informed decisions. Tune into our podcasts, explore our blog posts, and let's navigate the data center real estate frontier together!
Get more market insights here:https://shorturl.at/QWTRtIn a recent roundtable discussion, Donny Gunadi, our Senior Insight Analyst based in Melbourne, had the pleasure of speaking with Mr. Avnish Patankar, the Chief Business Officer of SM+. SM+ is revolutionizing the local industry with its high-tech solutions, particularly in the colo space. They've introduced a fully connected edge network data center which spans across 24 cities in Indonesia and will soon unveil their new flagship data center. Aimed at connecting content and cloud providers with Indonesia's large internet population (240 million users), SM+ is decidedly focusing on bringing content providers closer to users.The Impact of Deep Learning on Data Center InfrastructureEvery industry player in the data center space has likely uttered the word 'AI' in their conversations at some point in the past years - largely due to the significant impact of deep learning on the industry. As we emerged from the Covid era into a time where data consumption skyrocketed due to increased online activities, the demand for high-performance computing rose, calling for data centers equipped with hybrid cooling. This was largely influenced by the introduction of DCGPT into the market - an algorithm that changed the game entirely. As a result, the industry has seen an uptake in AI use cases in enterprises, indicating rising demands for advanced data centers to support high-density deployments.Forecasting the Future of Indonesia’s Data Center Market2024 was a thrilling year for Indonesia's data center industry. With exponential growth in cloud adoption, subsequent cloud deployments, and new data center platforms, the demand for more capacity across Indonesia, particularly in emerging cities, became increasingly apparent. This growth in the sector is set to continue into 2025 and beyond, particularly with the rollout of 5G and increased internet penetration in remote areas. By SM+'s own account, the Indonesian data center market in 2025 can be summed up in two words: high growth and transforming. With continuous investments flowing in, it's the perfect time to build a robust digital infrastructure for this rapidly developing nation.
Get more market insights here:https://shorturl.at/QWTRtDive into the world of datacenter insights with Luis Bravo, Sr. Insight Analyst, and David Sandars, Regional Director of EMA, as they navigate important topics in the data center space. Datacenter Market Conditions The conversation is kicked off with a close look at current datacenter market conditions. This segment provides a deep understanding of the current landscape and offers insights into future trends. From discussing the shifts in the market to analyzing the customer patterns, this part of the video provides a comprehensive overview of today's data center market.Construction Trends and Emerging TechnologiesOur Hosts focus on construction dynamics and the advent of new technologies. They notably discuss the industry’s shift from speculative construction to building only after securing tenants. This transformation is driven by the high costs and risks associated with large-scale projects.Navigating European Regulations and Infrastructure ChallengesGetting into the nitty-gritty of pan-European issues, they uncover the complexities of securing land and managing power capacity across different countries. They also touch upon the challenges of navigating through diverse and often stringent regulations in various European nations.Changing Public Perception about Data CentersThe duo emphasizes the crucial need for reshaping public perception about data centers. They propose that gaining support from local authorities and communities goes a long way in facilitating smoother operations and reducing resistance.Adapting to Technological Advancements: Liquid Cooling and MoreFinally, our experts explore the impact of new technologies like liquid cooling on construction projects. They underscore the urgent necessity for operators to adapt their strategies, especially considering the increasing cabinet densities and fast-paced evolution of technology.Watch this insightful discussion to stay updated on the data center industry's future.
Get more market insights here:https://shorturl.at/QWTRtIn this video, Mike Netzer, VP of Sales and Marketing, and David Liggitt, President and Founder of datacenterHawk, share insights into the critical factors that influence successful data center site evaluation and development. Whether you're a real estate professional, developer, or decision-maker in the technology field, the topics covered will offer you a comprehensive understanding of what it takes to choose the right location for a data center.Key Evaluation Criteria for Site SelectionThe video breaks down the three primary pillars of data center site evaluation—power, connectivity, and location. Experts discuss the availability of reliable power grids, high-speed internet connectivity, and how proximity to urban centers or key infrastructure plays a role in site viability.Understanding Data Center Risks and ChallengesAn in-depth focus is placed on potential hazards and risks that could impact a data center project. From environmental factors like flooding and seismic activity to legislative and zoning challenges, every major risk is unpacked to help viewers make informed decisions.The Role of Scoring SystemsA detailed explanation is provided on how data center site scoring systems work. The video highlights how these systems quantify and prioritize factors such as cost, accessibility, climate conditions, and long-term scalability to deliver a transparent assessment of site potential.Get ready to gain actionable knowledge and a strategic edge in the competitive world of data center development!
Get more market insights here:https://shorturl.at/QWTRtThis video features Dedi Iskandar, the Regional Director for Asia Pacific at datacenterHawk, and Donny Gunadi, Senior Insight Analyst for Asia Pacific at the same company. Their joint experience and knowledge offer an invaluable insight into the diverse and complex data center market in the Asia Pacific region.Understanding the APAC Data Center Market- Dedi Iskandar highlights the diversity and complexity of the Asia Pacific data center market which stretches across approximately 33 countries.- He delves into the variables that make this region unique, such as differing demographics, varying levels of internet penetration, and the maturity of markets within the region.- The importance of cloud, AI, and content in driving the data center industry in Asia-Pacific is emphasized, highlighting the ever-growing digitization of the contemporary world.- Dedi identifies notable growth potential and challenges in various countries within the region, such as Singapore, Malaysia, Indonesia, and Australia.AI and the Adoption of Data Center Colocation Services- Donny Gunadi discusses the impact of AI on the adoption of data center colocation services in the region.- He outlines the challenges and opportunities presented by AI applications in data centers, such as the demand for increased processing power and cooling requirements.- The discussion also spotlights the role of hyperscale cloud providers in encouraging the adoption of AI technologies in data centers.ConclusionThis enlightening discussion between Dedi Iskandar and Donny Gunadi gives us an exclusive look into the complexities of the Asia Pacific data center market. They outline the pivotal role of cloud, AI, and content in the industry while illustrating the potential for growth and the challenges faced in different countries within the region.Do watch the video for a closer look at how AI is influencing the adoption of data center colocation services and how increased processing power and cooling requirements are changing the game.
Get more market insights here:https://shorturl.at/QWTRtWelcome to episode 2 of our industry insight series, where Steve Sasse, our Regional Director for Americas, and Daniel Correia, Senior Insight Analyst at DatacenterHawk, deep dive into the vibrant LATAM data center market.Understanding the Market Size and Major PlayersIn this section, Daniel shares some critical figures outlining Bogota's data center prowess. With a commissioned power capacity of 37 megawatts and another 60 in the pipeline, Bogota's digital infrastructure is thriving. Exploring the Benefits of Zona FrancaZona Franca, located in Bogota, stands as a beacon of opportunity for data center operators. The area offers attractive tax and regulatory perks like tax exemptions and reduced import/export duties that help operators lower operational costs and cultivate a welcoming business environment.Unlocked Market Potential and the Role of PoliticsOur experts believe that Bogota holds untapped potential for growth, particularly post the 2026 elections. Political matters such as tax reforms and foreign direct investments shape the landscape of the data center industry in Colombia. As the market readies for an expansion phase, data center providers are already preparing to cater to the expected surge in demand.Harnessing Renewable Energy and Exploring Expansion PossibilitiesFinally, the conversation shifts to Colombia's use of renewable energy sources and expansion plans. With hydro as their primary renewable energy source and increasing investments in wind and solar, Colombia is leading the sustainability race. Moreover, while Bogota holds the majority of the data center market share, other cities like Medellin and Cali are on the radar for potential edge data center expansions in the near future.Tune in to the full episode for more detailed insights into the Bogota Columbia market and its promising future.
When it comes to the data center industry, staying informed about evolving development models is critical. And recently, Powered Shells have gained significant attention in the market.We sat down with industry experts David Liggitt and Mike Netzer to discuss the rise of Powered Shell data centers and their role in meeting today’s increasing demand for efficient and adaptable infrastructure. This blog explores everything from the history of Powered Shells to the benefits they offer end-users, data center operators, and developers.What is a Powered Shell?A Powered Shell is a purpose-built, secure data center facility that includes the physical structure, power to the site, and connectivity options, such as proximity to fiber providers. However, it omits critical IT infrastructure like UPS (Uninterruptible Power Supply) systems, generators, and cooling systems, allowing end-users to install their own components.This model contrasts with Turnkey Data Centers, which include all necessary IT equipment, ready for immediate operation. Powered Shells provide a flexible and cost-effective alternative, with leasing arrangements typically based on square footage rather than the industry-standard price per kilowatt (kW).Why Are Powered Shells Gaining Popularity Now?The modern data center landscape looks vastly different from that of a decade ago. Key factors contributing to the renewed interest in Powered Shells include:1. Hyperscale InvestmentBig-name companies like Amazon, Microsoft, Google, and Meta are making massive investments in data center infrastructure—announcing plans to spend $100 billion, $80 billion, $75 billion, and $60–80 billion respectively. This surge in demand for scalable solutions drives innovative approaches like Powered Shell development.2. Speed to MarketTo keep up with rapid growth, companies are seeking faster ways to bring data center capacity online. Powered Shells provide an advantage by allowing end-users to set up critical infrastructure and operations in less time.3. Flexibility and CustomizationUnlike Turnkey models, Powered Shells offer end-users the flexibility to install and manage their own IT, power, and cooling equipment. This approach is particularly appealing to organizations with unique requirements, such as liquid cooling or customized design preferences.4. Capital Allocation EfficiencyFor many businesses, building a full Turnkey data center is cost-prohibitive. Powered Shells reduce upfront capital demands while still delivering a secure, scalable solution.Geographic Trends and Market AdoptionPowered Shell developments have historically been concentrated in key markets like Northern Virginia, which accounts for approximately 100 of the 130 Powered Shell deals tracked globally. However, this model is gaining traction in other regions due to constraints around land availability, power, and evolving end-user needs.Developers and operators looking to expand internationally should also monitor markets like Europe. For example, a recent €200 billion investment in France for AI and data center infrastructure highlights the growing demand beyond the U.S.Looking AheadAs data center deals grow in size—often exceeding hundreds of megawatts—hybrid models combining Powered Shell and Turnkey facilities are becoming increasingly common. These arrangements allow developers to balance capital allocation while meeting diverse client needs.Powered Shells also provide a natural entry point for industrial developers entering the data center market. By leveraging their expertise in building large-scale industrial sites, these developers can adapt their portfolios to serve the growing digital infrastructure sector.
The data center industry is undergoing a period of unprecedented growth and transformation, addressing evolving demands and navigating complex challenges. Recently, Mike Netzer, VP of Sales & Marketing at datacenterHawk, sat down with Santiago Suinaga, CEO of Infrastructure Masons (iMasons), for a conversation that explored key trends affecting the industry, from talent shortages to power constraints, as well as the unique role of local chapters in fostering innovation and collaboration.Here's a closer look at the discussion and its implications for data center professionals.The Four Core Challenges Facing Data Centers Anchored in its mission to unite digital infrastructure builders, iMasons has identified four major obstacles shaping the industry today. Suinaga referred to them as the “Four Ps”: Power: Power availability is one of the most significant constraints impacting the industry's growth. With vacancy rates in key markets at historic lows and renewable energy adoption increasingly critical, data center developers are now shifting toward nontraditional markets where power is more accessible. People (Talent): The growing demand for data center expertise highlights an acute talent gap. Attracting and retaining skilled professionals remains a pressing challenge for expanding the workforce in this highly specialized sector. Perception: The data center industry has often operated behind the scenes, maintaining a low profile. However, with growing public awareness and local pushback against developments—commonly known as “NIMBY” (Not in My Backyard)—it’s vital to improve public perception and highlight the essential role data centers play in every facet of modern digital life. Planet: Sustainability is a top priority as the industry seeks to minimize its environmental footprint. From leveraging renewable power sources to designing efficient cooling systems, businesses are tackling the need for eco-friendly practices head-on.Emerging Trends in Power Dynamics and Market ExpansionOne standout point from Suinaga’s discussion was the evolving relationship between power availability and data center deployments. Historically, data centers were designed near traditional urban or industrial hubs, expanding power resources to meet their needs. However, this model is shifting. Today, operators are increasingly locating facilities near existing power resources, sometimes in nontraditional markets like North Dakota. This strategic flexibility is reshaping how and where data centers are built, creating opportunities for lesser-known regions to play a pivotal role in the digital transformation ecosystem.The Digital Infrastructure Report and Future Outlook According to Suinaga, the state of the industry can be summarized by three critical factors:Skyrocketing Demand: Data center consumption is at an all-time high, driven by the rapid expansion of cloud computing, artificial intelligence, and digital services.Constrained Supply: Major markets face unprecedented supply limitations, driving up vacancies and costs.Market Diversification: Nontraditional markets are stepping in to meet demand, reshaping the global data center landscape.
Our latest discussion features Mike Netzer and David Liggitt, as they explore the topic of powered land in the data center industry. The Transformation of Data Centers: Take a journey through the history of data centers, highlighting the migration from rural markets to bustling cities such as Chicago, Phoenix, and Northern Virginia, fueled by cloud availability zones. The New Era of Data Center Development: Discover the current focus on powered land. Developers are buying up land, supplying power, and selling it for profit. With an ever-growing demand for larger data centers, from 36MW to a staggering 500MW, the landscape is quickly changing. Navigating Challenges in Power Land Acquisition: Not everything is smooth sailing in the industry. Developers face hurdles in obtaining power for land development, as utility companies impose more stringent requirements and costs for site surveys and study plans. Balancing Opportunities and Risks: Enter the world of high stakes and high returns in the data center space. This long-term investment requires substantial capital and expertise, with shifting market dynamics focusing on alternative energy solutions and strategic workforce planning. Key Insights: The US data center market is booming and drawing in a crowd of investors and developers. To be successful, one must understand the landscape, differentiate real versus speculative projects, and make strategic decisions.
The Asia-Pacific (APAC) region continues to be a vital hub for the global data center industry, driven by rapid digital transformation, growing cloud adoption, and the increasing demand for artificial intelligence (AI) applications. To unpack the latest developments in this fast-moving sector, datacenterHawk recently hosted a podcast featuring Dedi Iskandar, Regional Director – APAC, and Donny Gunadi, Senior Insight Analyst – APAC. Together, they provided deep insights into the APAC data center market, including emerging trends, key players, and the dynamics shaping this burgeoning industry.During the discussion, Donny highlighted significant developments in the APAC region over the past five years. One notable trend is the influx of Western and Chinese hyperscalers entering the market, particularly in countries like Indonesia and other Southeast Asian nations. These hyperscalers—major cloud service providers such as AWS, Microsoft, and Alibaba Cloud—are driving colocation demand and pushing the industry forward.Interestingly, while Australia's data center market remains dominated by Western hyperscalers such as AWS and Google, countries like Indonesia have emerged as particularly attractive markets due to their large populations and increasing digital maturity. Meanwhile, AI-related requirements across the region are also ramping up, especially as both cloud providers and enterprises explore the potential of AI training and inference workloads.The hosts also explored how mature markets such as Sydney, Singapore, and Tokyo differ from rapidly growing emerging markets like Bangkok, Jakarta, and Johor Bahru. Mature markets typically offer robust infrastructure, established connectivity, and higher levels of competition. These regions remain highly attractive but may face growth limitations due to high land prices and limited power availability.On the other hand, emerging markets present unique opportunities. Regions like Jakarta and Batam have attracted significant investments, partially due to Singapore’s moratorium on new data center developments. These markets offer more affordable real estate opportunities and untapped potential, but they also come with challenges such as uneven access to power infrastructure and connectivity hurdles.For instance, Jakarta, with its population of over 270 million, is a prime example of a fast-growing market with high demand. However, as Donny emphasized, different markets require tailored strategies based on local regulations, infrastructure maturity, and availability of land and resources.Among the emerging markets discussed, Melbourne stood out as a promising alternative to its larger Australian counterpart, Sydney. Despite Sydney’s position as the dominant leader in the market—being two to three times larger in scale—Melbourne offers distinct advantages. Donny identified the following factors driving Melbourne's growth:Comparable Population: With approximately 5–5.5 million residents, Melbourne’s population is similar to Sydney’s, making it an attractive target for data center investment.Affordable Land Prices: Industrial areas in Melbourne’s northwest have been effectively converted into data center campuses, offering cost advantages over Sydney.Emerging Connectivity: Efforts to enhance Melbourne’s telecommunication and submarine cable infrastructure are bolstering its competitiveness as a key data center hub.Colocation Providers and Hyperscalers: Major players like Equinix and hyperscalers such as AWS are increasing their investment in the city, adding momentum to Melbourne's rise.This combination of factors places Melbourne as a high-potential market, particularly for data center operators looking for cost-effective entry points with long-term growth potential.
Take an insider's look into the rapidly evolving data center industry with this riveting discussion featuring Mike Netzer, VP of Sales and Marketing, and David Liggitt, Founder/President at datacenterHawk. This video delves deep into the industry's hottest topics, providing a comprehensive understanding of the challenges and opportunities currently unfolding.
Key Insights:
Pacific Telecommunications Council (PTC) Conference: The growth in attendance and escalating interest in data centers underscores the importance and influence of this industry.
AI Technology Impacts: Understand the ripple effects of new AI technology on data center design, power requirements, and financial complexities.
Cooling & Design Flexibility: Learn about the challenges and potential of liquid cooling and design flexibility in the changing landscape of data centers.
Credibility & Experience: Delve into why credibility, financial expertise, and hands-on experience are invaluable assets in data center operation and development.
Navigating Market Shifts: Gather insights into the strategic decision-making required to adapt to market shifts and technological advancements for sustained success.
Immerse yourself in this enlightening conversation and equip yourself with the knowledge to navigate the ever-changing data center industry!
Watch, learn, and stay ahead of the curve with the industry leaders!
Join David Sandars, our Regional Director for EMEA, and Luis Bravo, a Senior Insight Analyst here at datacenterHawk, as they dive into an enlightening discussion about the development of the European data center industry.
In this podcast chat, David and Luis explore the industry's evolution over the past three decades. They shed light on the key markets like Frankfurt, London, Amsterdam, Paris, and Dublin that have shaped the European data center landscape.
The conversation then turns south, exploring the emergence of fresh markets in Spain, Portugal, Italy, Greece, and Austria. Our experts delve into the factors fueling this development, such as power availability and regulatory climates.
Specific insights are given into Spain, Portugal, Italy, Greece, and Poland's data center developments. These insights showcase the significant investments being made and the activities of hyperscalers in these regions.
The discussion ventures into the colder climates of Denmark, Sweden, Finland, Norway, and Iceland, where new locations are being scouted.
In conclusion, this conversation emphasizes the industry's shift towards new markets, the importance of sustainability practices, and how connectivity is driving growth.
Watch now to gain a deeper understanding of the evolving landscape of the European data center industry.
In this podcast discussion, Steve Sasse, our Regional Director for the Americas, and Daniel Correia, our talented Senior Insight Analyst, explore the complexities and opportunities within the Latin American data center market.
Opening Insights
Our experts start by introducing the overall market size, naming key players, and explaining some of the unique elements that characterize the Latin American region. We learn that the total commissioned power of the Latin American data center market stands at around 1.3 gigawatts - an impressive figure given the region's growing tech economies.
Key Markets
Sao Paulo emerges as the lead market, accounting for 44% of the region's power. However, Santiago in Chile and Querétaro in Mexico also hold important positions, highlighting the varied opportunities for investment and growth.
Unique Market Aspects
The experts delve into the unique facets of the Latin American market, including cheap land availability and strong investments in renewable energy. These factors make the region a viable location for data center establishments keen to capitalize on cost-effective land and energy supplies.
Emerging Markets and Power Challenges
Our experts highlight a few emerging cities such as Rio de Janeiro, Fortaleza, Buenos Aires, and Bogota. They also delve into the inherent power challenges in the region, notably in Brazil and Querétaro, due to distribution difficulties and administrative hurdles.
Market Entry Strategies
To conclude, the conversation focuses on strategies for successful entry into this promising market. Crucial factors such as understanding local cultures, hiring local talent, navigating regulations, and energy access take centre stage. Notably, our experts emphasize that what works in one market may not necessarily be effective in another, underpinning the need for adaptive strategies.
Whether you're a seasoned data center professional or a newcomer to the industry, this video is a must-watch for those interested in the Latin American data center market. Click through to gain valuable insights that could shape your strategic planning and growth in the region!
Host, Mike Netzer of datacenterHawk connects with the innovative minds behind Hyper Solutions, Dennis Strieter and Vladimir Gulkarov. Together, they delve into the unique world of the data center industry, discussing their journey, the challenges they've faced, and the future trajectory of the industry.
From Humble Beginnings to Industry Leaders
In the opening segment, Dennis and Vladimir recount their individual paths into the data center industry. Dennis transitioned from a humble role as an office manager to becoming a top salesperson in the industry, while for Vladimir, it was a familial influence that carved his niche in the sector, starting in high-performance computing before transitioning to PDI and Eaton Corp.
The Birth of Hyper Solutions
The discussion moves forward to the birth of Hyper Solutions, a company born out of the trials faced during the COVID-19 pandemic with the vision to bring innovative solutions to data center manufacturing. They aim to disrupt the industry through a network effect model, akin to companies like Uber and Airbnb. Hyper Solutions' approach focuses on improving assembly processes, cutting down on lead times, and enhancing quality through innovative engineering and the smart use of distributed resources.
Future-Proofing the Data Center Industry
The conversation then gravitates towards the future, underscoring the importance of sustained innovation, scalability, and adapting to emerging technological demands. They predict that the industry will shift towards water-cooled systems and increased miniaturization of equipment for enhanced efficiency in power distribution. This future-gazing discussion highlights the need for continuous innovation, waste reduction, and improved product design to meet the ever-changing data center requirements, catering to the demands of both hyperscalers and enterprises.
On our latest edition of the datacenterHawk Podcast, Mike Netzer and David Liggitt engaged in a discussion about the future of data centers. They touched upon a range of topics from the potential of alternative energy sources to the growth in key markets such as Atlanta and Dallas. In this blog post, we distill the significant insights from the conversation and gauge their impact on the evolution of the data center industry.
Global Market Trends in the Data Center Industry
The conversation underscored the hefty investments pouring into data centers worldwide – North America, Europe, Latin America, or the Asia-Pacific. Concentrating on unique market microtrends, we see an industry evolving towards a more globalized approach. This shift is propelled by soaring demands for data center services and the necessity for advanced infrastructure to support emergent technologies like AI.
The Evolution of Data Center Designs
Another central issue discussed was the changing design of data centers, particularly with respect to liquid cooling density. Tech giants like Microsoft are reassessing their campus designs to accommodate new technologies and enhance efficiency. Reflecting the industry's relentless urge to adapt to changing needs and optimize operations, as data centers grow more intricate and power-demanding, innovative design solutions become critical to cater to the burgeoning demand for digital services.
Navigating the Power Supply Challenge in Data Center Contracts
The conversation also delved into the intricacies of securing utility provisions in data center contracts. With emphasis on PowerShell deals and the necessity for flexibility in lease structures, data center operators are steering through convoluted agreements to maintain a steady power supply. As the industry progresses, the significance of strategic partnerships and robust contractual frameworks increases. By facing these challenges head-on, data center operators can circumvent risks and enhance operational resilience.
Putting Data Centers in Space?
Leveraging the insights shared by Mike and David, the concept of data centers in space introduces a groundbreaking frontier for the industry. By utilizing the unique environment of space, operators can harness benefits such as consistent cooling due to extreme temperatures and the potential for efficient energy use through advanced solar technologies. Additionally, placing data centers in orbit could alleviate terrestrial constraints, such as land scarcity and environmental impact, while enabling faster global networking through reduced latency in certain configurations. However, this ambitious vision comes with significant technical, logistical, and regulatory challenges that require innovative solutions, extensive collaboration, and substantial investment. As this area continues to evolve, it represents a bold step toward redefining the possibilities within the data center landscape.
Wrapping up, the dialogue between Mike Netzer and David Liggitt presents an insightful lens to view the current and future trajectory of the data center industry. From geographical expansions to design innovations and contractual nuances, the industry is witnessing massive transformations to cater to the demands of an increasingly digital world. By staying abreast of these changes and being adaptable, data center professionals can effectively steer through these shifts and drive sustainable growth in the dynamic data center market.
Discover fresh insights about the Northern American data center market from the experts themselves. In our recent podcast, Ed Socia, our Director of North America, and Montana Myer, our Senior Analyst delve into market trends, growth indicators, challenges, and opportunities.
Hyperscale Users: Dominating the North American Landscape
In the first segment of their discussion, Socia and Myer explore the increasing influence of hyperscale users in North America, especially within the United States. They delve into the dichotomy of self-building vs. leasing practices and their implications on the market dynamics. The duo also discuss how various government incentives, including state and local tax benefits, act as considerable pull factors in this region, directly influencing site selection and development decisions.
Primary Markets and Submarkets: The Powerhouses of Growth
Next, the discussion moves onto the primary data center marketplaces. Socia and Myer shed light on the continued expansion within established markets such as Northern Virginia, Dallas, Chicago, Atlanta, Phoenix, and Silicon Valley. They highlight an interesting trend: hyperscale users are experimenting with a combination of self-building and leasing principles within these markets, indicating a shift in data center development strategies.
Emerging Markets and Connectivity: The Future of Data Centers
Finally, Montana and Ed discuss some of the exciting emerging data center markets within North America, including areas like Charlotte, Louisiana, Mississippi, and Arkansas. These regions are attracting a lot of interest from both hyperscale users and third-party developers. The importance of solid connectivity and power infrastructure in operating a successful data center is underscored, emphasizing strategic partnerships with utilities and fiber connectivity as a prerequisite for success.
datacenterHawk: Navigating the Future of Data Centers
In closing the discussion, Socia and Myer express their ongoing commitment to guiding industry professionals to make informed decisions in this dynamic landscape. With these insights and the support of datacenterHawk, they encourage everyone to navigate the ever-evolving complexities of the North American data center market confidently. Stay tuned for more insights!
The global data center industry is evolving rapidly, fueled by increasing demand for power, sustainability initiatives, and the growth of emerging markets. In this panel discussion, datacenterHawk Regional Directors from North America, EMEA, and Latin America (LATAM) share their perspectives on the trends shaping the industry in 2025.
North America continues to lead the data center market, with hyperscalers employing a dual approach: self-builds alongside third-party colocation deployments. Power availability remains a critical challenge, driving exploration of natural gas and renewable energy solutions. Emerging submarkets like Charlotte, Kansas City, and Minneapolis are gaining attention, complementing the robust activity in established hubs like Phoenix, Dallas, and Northern Virginia.
EMEA remains a dynamic region for data center growth. The Nordics stand out for their access to renewable energy and lower operating costs, driving significant hyperscale deployments. AI-driven demand is shaping market trends, with requirements often exceeding 10 MW. Secondary markets such as Spain, Italy, and Eastern Europe are emerging as key players, leveraging infrastructure investments to support large-scale projects. Sustainability initiatives remain central, with commitments to carbon neutrality by 2030 shaping regional strategies.
Latin America is rapidly emerging as a high-growth region in the global data center landscape. Brazil leads the charge, with Sao Paulo serving as a primary hub, supported by its strong renewable energy resources and established infrastructure. Secondary markets like Rio de Janeiro and Bogota are gaining traction, driven by hyperscaler interest and the increasing digitization of the region’s economies. While challenges such as power constraints and high import tariffs exist, LATAM markets are innovating to attract investment, including leveraging renewable energy to meet sustainability goals.
Power Availability: Reliable and sustainable power sources are becoming a central focus, prompting shifts to regions with robust energy resources.
Emerging Markets: Secondary and tertiary markets, such as Rio de Janeiro, Bogota, and Spain, are growing rapidly and attracting hyperscalers.
Technological Innovation: The demand for high-density computing, driven by AI, is pushing advancements like liquid cooling technologies to the forefront.
Sustainability: The commitment to carbon neutrality by 2030 is reshaping data center design, energy sourcing, and operational strategies across all regions.
Join us as we explore the exciting changes shaping the future of data centers in 2025.
Bringing together Ed Socia, datacenterHawk's North American Insight Director, and Mike Elias, the Senior Equity Research Analyst at TD Cowen, we've entered an intriguing dialogue revolving around the future of the data center industry. The riveting video discussion elucidates the evolution of the industry, the impact of AI, and the potential growth that could reshape the landscape in the coming years.
The Journey of Mike Elias into Data Center Industry
The dialogue begins with Mike Elias, the seasoned Equity Research Analyst from TD Cowen, sharing his professional voyage into the data center industry. He sketched out his impressive journey from the realm of engineering to equity research. The viewers could clearly perceive his strong passion for data centers and his profound knowledge in this field, especially when he elucidated the changing needs for digital infrastructures in recent years.
Shift in the Demand for Digital Infrastructure
Our discussion further delved into the evolution of demands for digital infrastructure, particularly in the post-Covid era. Mike emphasized the escalating need for data center capacity in today's digitized world. He also stressed the role of hyperscalers as the prominent drivers of market demand and the changing requirements for larger data centers.
Potential Impact of AI on Data Centers
The conversation went on to explore the potential impact of AI on data centers. Mike shared a sense of optimism about the diverse applications of AI across various sectors in future and highlighted the positive implications for society at large. The grand vision he shared emphasized the long-term benefits for the data center sector as AI investments continue to proliferate.
Changing Dynamics of Capital in Data Centers
Towards the end, Mike shed light on the changing dynamics of capital in the data center domain. He discussed the implications of interest rate changes on data center pricing and the potential for public companies to re-emerge in the market. The need for capital, intended for long-term support to foster the growth of the sector, was highlighted.
In conclusion, the insightful dialogue between Ed Socia and Mike Elias offered a valuable peek into the future of data centers. As the industry continues to evolve, the prospects for growth and innovation appear promising. Certainly, this sector will continue to offer abundant opportunities for investment and development in the foreseeable future.
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