Data Center News Roundup: Welcome to 2025

Welcome to 2025! The data center industry continues to evolve rapidly, with significant advancements and challenges on the horizon. In this newsletter, we'll explore some of the key developments, their advantages, disadvantages, and what they mean for the future of data centers.

Gartner's Forecast:

Gartner predicts strong growth for data center spending in 2025, with worldwide spending expected to surpass $367 billion. This growth is driven by the increasing demand for GenAI-related server sales, which are projected to account for over $257 billion in 2025 spending

This week's top data center news includes predictions for data centers in 2025, including security, artificial intelligence, and sustainability, as well as a look at the stories that shaped 2024.

Given the rapid pace of data center news, we aim to simplify the process for professionals in the field who want to sort through the clutter and identify the week's most significant stories.

The Data Center Knowledge News Roundup provides the most recent information on mergers, investments, security risks, and market trends in the data center sector.

Get content delivered directly to your inbox by subscribing to the Data Center Knowledge newsletter, which will keep you informed about everything related to data centers.

Looking Back: 2024 in Review

Let us take a trip down memory lane before diving into the news of the new year, starting with supply chain bottlenecks, data centers in odd locations, and the rise of AI data centers.

In the last few weeks, we have analyzed the top stories in 2024 related to cloud computing, power and cooling, security, artificial intelligence, sustainability, and data center construction:

• 2024’s Biggest Data Center Construction Stories: A Year in Review: 2024’s most-read data center construction stories highlight major global investments, sustainable building innovations, AI-driven hyperscale demand, creative solutions to land shortages, and financing strategies for new builds. Read the full list of top data center construction stories
• Top 10 Data Center Power and Cooling Stories of 2024:?
• The top ten data center power and cooling stories of 2024 from Data Center Knowledge brought experts together to discuss important energy usage findings, how to use AI to make data center operations more sustainable, how to create more efficient cooling systems, and how utility companies and data centers need to work together to address these urgent energy issues.
• ?Read the full list of top data center power and cooling stories.
• Top 10 Data Center Security Stories of 2024:?
• Our top 2024 data center security stories were surprisingly low in the proportion of traditional cybersecurity news. Instead, how we discuss security in the data center is defined by other security-related factors, such as addressing the particular security challenges of edge data centers or putting out actual fires inside data centers.
• The Biggest AI Data Center Stories That Shaped 2024:
• There were still a lot of unproven forecasts and assumptions regarding how AI would affect the data center sector in 2024. Our top AI stories from the previous year, which ranged from edge AI architectures to surging capital expenditures, addressed both the potential and constraints of this emerging technology.
• Top 10 Data Center Sustainability Stories of 2024:?
• With calls from environmentalists for increased transparency regarding data center energy consumption, operators are seeking more efficient ways to handle AI workloads. Over the past year, sustainability trends have centered on innovative initiatives aimed at minimizing energy waste in data centers.
• Read the full list of top data center sustainability stories.

• Top 10 Cloud Data Center Stories of 2024:?
• The top stories about cloud computing in 2024 covered the history of the cloud, including outages at major public cloud platforms and the origins of the grammatically incorrect term "on-premise. " They also covered new developments like the effects of VMware's Broadcom acquisition, cloud sustainability initiatives, and the merging of AI and the cloud.

Looking Forward: 2025 Predictions

Related: Financing Strategies for Data Center Operations: A Comprehensive Guide

But ‘looking back’ can tell only part of the complex and ever-changing data center story.

As 2024 came to a close, technology analyst and regular Data Center Knowledge contributor Christopher Tozzi shared predictions for the trends that will have the greatest impact on data centers in 2025.

• Data Center Cooling: Trends and Strategies to Watch in 2025:?
• As businesses search for more economical ways to cool their facilities, Tozzi outlines data center cooling trends for 2025, including liquid cooling, heat reuse, and analytics to address rising temperatures and sustainability issues.
• 7 Key Data Center Security Trends to Watch in 2025.?
• Data center security will probably be redefined by hybrid cloud, chip-level controls, and modernized monitoring systems.
• 5 Cloud Computing Trends That Will Impact Data Centers in 2025.?
• Christopher Tozzi examines five cloud computing trends that will influence data centers in 2025, ranging from the emergence of quantum services to the energy impact of AI. “As compliance mandates intensify,” he writes, “so will the pressure that data center operators face to make security protections as strong as possible.”

• Top Data Center Sustainability Trends to Watch in 2025.?
• In 2025, will data center sustainability still be a popular topic? Definitely. The use of public clouds as a sustainability measure, more open reporting, and a greater emphasis on water use are among the predictions.

Related: Schneider Electric Ousts CEO After Disagreements Over Strategy

New Data Center Developments

Finally, without a summary of the most significant data center developments over the past week, this news roundup would not be considered Data Center Knowledge. New data centers were built and announced even during the holidays.

Equinix announced on December 23 that it would pay €59 million to acquire the Irish data center business of BT Group, which includes data centers in Dublin's Citywest and Ballycoolin. At the moment, Equinix runs six data centers near Dublin.

Bit Digital purchased a 5 MW Tier-3 data center expansion site in Montreal, Canada, on December 27. The HPC infrastructure company, situated in New York, paid CAD 33.5 million for the 160,000-square-foot MTL2 site and anticipates spending an extra CAD 27.6 million to finish the retrofit by May 2025.

A $17 billion, 13-building data center campus in Coweta County, 45 miles south of Atlanta, Georgia, was proposed by Atlas Development LLC on New Year's Eve. According to The Atlanta Journal-Constitution, the so-called "Project Sail" campus will have a total footprint of 4.9 million square feet spread over 832 acres, with each building measuring 378,000 square feet.

Elsewhere, St. Louis-based World Wide Technology (WWT) announced plans to acquire Canadian IT services provider Softchoice for $1.25 billion.

“Softchoice has been a transformative player in the IT industry for over 35 years, and adding its complementary software, cloud, cybersecurity, and AI capabilities to WWT’s portfolio will enable us to create even greater value for our clients striving to achieve their digital transformation goals,” said WWT co-founder and CEO Jim Kavanaugh.

Other Great Reads in DCK This Week

Energy-Hungry AI Firms Bet on These Moonshot Technologies.?

Data centers' enormous electricity requirements have worried the power industry. Large amounts of new energy are promised by these technologies, but they come at a high cost.

Utilities Embrace AI for More Integrated Operations: Cisco Study.

A recent study shows that utilities are using AI to improve operational technology and boost productivity.

Robotic Collaboration Launched for Maintenance in Chip Production.?

The number of positions in the semiconductor industry outpaces the current pool of skilled engineers.

Google’s Willow Chip: Quantum Leap or Quantum Hype??

Google's Willow chip makes a significant advancement in quantum error correction, but how far along is practical quantum computing?

In the Shadows of Arizona’s Data Center Boom, Thousands Live Without Power.?

There is intense competition for electricity as data centers deplete America's power systems. Many on Navajo Nation land are on the losing end.

Advantages:

• Economic Growth: Increased spending on data centers can stimulate economic growth and create job opportunities.
• Technological Advancements: The investment in new technologies can lead to more efficient and powerful data centers.

Disadvantages:

• High Costs: The substantial investment required can strain budgets and resources.
• Environmental Impact: Increased energy consumption and carbon footprint are concerns that need to be addressed.

Denmark's AI Supercomputer: Denmark has launched its first AI supercomputer, Gefion, in collaboration with Nvidia. This supercomputer is expected to drive advancements in life sciences, climate research, and quantum computing1.

Advantages:

• Innovation: Gefion will enable groundbreaking research and innovation in various fields.
• Local Infrastructure: Having a domestic AI infrastructure can foster local talent and expertise.

Disadvantages:

• High Initial Costs: Developing and maintaining such advanced technology can be expensive.
• Resource Allocation: Ensuring equitable access to the supercomputer's resources can be challenging.

Sustainability Efforts: There's a continued focus on sustainability, with innovative efforts to reduce energy waste and improve efficiency in data centers.

Advantages:

• Environmental Benefits: Reducing energy waste helps mitigate the environmental impact of data centers.
• Cost Savings: Improved efficiency can lead to significant cost savings in the long run.

Disadvantages:

• Implementation Challenges: Implementing sustainable practices can be complex and require substantial investment.
• Technological Limitations: Current technologies may not be sufficient to achieve all sustainability goals.

Conclusion:

The data center industry in 2025 is marked by significant growth, innovation, and sustainability efforts. While these developments bring numerous advantages, they also come with challenges that need to be addressed. By focusing on sustainable practices and equitable resource allocation, the industry can continue to thrive and contribute to global progress.

#DataCenter2025 #GartnerForecast #AI #Sustainability #Innovation #TechNews

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