Where should you put your next data center?
OpenAI CEO Sam Altman recently caused a stir with his claim that $7 trillion in investment is needed in global computing infrastructure, from semiconductors to data centers, to support AI development. This figure alone represents nearly double the amount of total global infrastructure spending.?
The tech industry is spending roughly $104 billion per year on data centers, a sector whose capital allocation is outpacing other infrastructure and real estate categories. Notably, Blackrock, Microsoft and Abu Dhabi-based sovereign wealth fund Mubadala have annouced a Global AI Infrastructure Partnership (GAIIP) that plans to deploy at least $30 billion in equity capital (towards a potential debt financed total of $100 billion) to boost the deployment of data centers.?
But where should all these data centers be built???
Writing last year in Foreign Policy, Michael Ferrari and I argued that TSMC would face unexpectedly high climate risks related to water shortages and heat stress at its plants in Arizona. Furthermore, even with newer energy efficient and less water intensive technologies, data centers are expected to consume more than 20% higher electricity each year, increasing the sector’s overall contribution to energy demand and greenhouse gas emissions.?
We believe that a multi-dimensional overlay of geospatial data can guide the rapid but sustainable deployment of computing infrastructure worldwide. Such data layers include climate models that forecast groundwater stress and heatwave intensity, analyses of renewable energy supply and potential, projections around energy grid stress, government regulations of the energy sector, and anticipating demand based on public investment, corporate greenfield investment and migration patterns.??
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AlphaGeo already brings all these layers together onto its platform in order guide clients such as leading digital infrastructure provider MARA. From hyperscale to edge data centers, accounting for all relevant variables can ensure high-conviction location selection despite intense commercial competition and climate volatility.??
To learn more about how AlphaGeo can help you decide where to build your next data center, visit us at www.alphageo.ai or contact us at [email protected].??
Managing Partner, South Shore Consulting - President of Paratrade Corporation
5 个月Data centers need to co-located with nuclear power plants, that can provide clean and stable power. In the west this favors countries like France who have invested in heavily nuclear power.