Not content with drinking up all our water, now we'll compete with DCs for power
Demand for datacenter space is currently at a high in many markets around the globe because of the AI boom, despite issues with securing adequate power, at least according to commercial real estate firm CBRE.
In North America, datacenter inventory grew by 24.4 percent during Q1 2024, compared with the same period last year. This led to 807.5 MW of capacity being added across the four largest bit barn markets in the region - Northern Virginia, Chicago, Dallas and Silicon Valley. Paris even hit 40 percent year-on-year growth, despite capacity supply shortages across the continent, especially in core markets like Frankfurt.. This points to an ongoing need for investment in data dormitory development, it says, although sourcing power remains a key challenge.
The combination of high demand and shortage of bit barn availability is inevitably pushing up prices. Average asking rates for a typical 250 to 500 kW requirement across all four featured North American markets jumped by 20 percent in Q1, CBRE says.
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