Source URL: https://www.theregister.com/2024/10/29/datacenter_developer_says_power_issues/
Source: The Register
Title: Datacenter developer says power issues holding up new builds
Feedly Summary: ‘The single biggest constraint is access,’ says exec looking to invest ‘hundreds of millions’
One of the UK’s major commercial property developers says it would be pumping investment into new datacenters if it could just secure the energy supply needed for those facilities, reflecting a growing problem worldwide.…
AI Summary and Description: Yes
Summary: The text highlights the challenges faced by the UK and global datacenter industries due to energy supply constraints, which are hampering investment and growth. The situation is exacerbated by the surge in demand driven by the expansion of AI technologies and cloud services. It underscores the strategic importance of datacenters as critical national infrastructure, while also acknowledging local concerns over job creation and environmental impact.
Detailed Description:
The content discusses significant issues surrounding the expansion of datacenters, with a focus on energy supply challenges, particularly in the UK, but also indicating that this is a global concern. Here are the major points:
– **Energy Supply Constraints**: The CEO of Segro, a major commercial property developer, stated that the biggest barrier to investing in new datacenters is securing a reliable energy supply.
– **Investment Potential**: Segro is poised to invest heavily in new data facilities, potentially hundreds of millions of pounds, but is hindered by the lack of grid capacity.
– **Global Perspective**: A report by CBRE indicates that power shortages are a top concern for datacenter companies across multiple continents, including North America, Europe, and Asia-Pacific.
– **Government Actions**: To combat power constraints, local governments are simplifying permitting processes and increasing investments in renewable energy.
– **Future Energy Demand**: A Bain & Company report warns that energy demands from datacenters could surpass supply in the next few years unless utility companies adapt quickly.
– **AI Development**: There is a noted connection between the growth in datacenters and the rise of AI model training and cloud services, highlighting the importance of this infrastructure for future technologies.
– **Critical National Infrastructure**: The UK government has classified datacenters as critical national infrastructure, which allows them to bypass some planning restrictions, facilitating faster development.
– **Investment Commitments**: The UK government has received commitments from US tech firms to invest in data facilities, reinforcing the need for appropriate energy infrastructure.
– **Environmental Concerns**: There is a growing discourse surrounding the environmental impact of datacenters, particularly their contribution to greenhouse gas emissions.
Overall, the text reveals essential insights for security, compliance, and infrastructure professionals. The challenges of energy supply not only impact operational capabilities but also influence investment decisions and compliance with environmental regulations. Addressing these energy challenges will be crucial for maintaining the momentum of AI and cloud services, particularly as the industry navigates both political and regulatory landscapes.