Data center spotlight

Data centers are critical infrastructure that support the vast digital ecosystem of the modern world, enabling everything from cloud computing to data storage and internet connectivity. The data center industry is at the dawn of a transformative era, driven by the advancement of AI. Billions of dollars globally have been invested in AI, driving demand for more data center infrastructure, which is projected to grow at 15 percent per year.

However, these facilities face a multitude of challenges that can impact their efficiency, sustainability and reliability. Rising energy consumption, the need for advanced cooling solutions, cybersecurity threats, sustainability challenges and the increasing demand for faster processing speeds all pose significant obstacles. Additionally, as data centers continue to scale up to meet global demands, the pressure to innovate while adhering to stringent environmental and regulatory standards becomes ever more pronounced. This complex landscape requires continual adaptation and strategic planning to maintain optimal operations and future growth.

Below, White & Case lawyers explore some of the challenges faced by developers, owners and operators of data centers, and some of the opportunities that could shape the industry going forward.

Intelligent Design: Constructing next generation data centers for the AI boom

With their massive energy needs, data centers will rely on a range of innovative technologies and construction methods. Read full here  »

Cooling data centers: Keeping up with emerging technologies

In today’s digital and hyperscale computing landscape, the need for data centers has grown exponentially. According to the International Data Corporation, the global data sphere is expected to grow to 175 zettabytes by 2025, up from 33 zettabytes in 2018, with no signs of abating. This growth in data center infrastructure has led to a significant increase in heat generation, making its management crucial for business efficiency. Data centers can produce heat densities ranging from 50 watts to as high as 300 watts per square foot. Therefore, cooling has become an important and costly issue, accounting for up to 40 percent of total energy consumption in data centers. Read full here  »

Data centers and water: From scrutiny to opportunity

Data centers power the cloud computing services companies rely on for everyday tasks, including banking, logistics and data storage and processing. In many countries, including Australia and the United States, data center infrastructure is now considered critical infrastructure. However, our burgeoning digital dependency demands significant water usage, and often in regions that are already water-poor. Read full here  »

Demand surge propels data center financing boom

Despite macroeconomic uncertainty, data center financing has shown little signs of slowing down, as strong demand for data capacity gives lenders and investors the confidence to continue deploying capital into new projects. Read full here  »

Power moves: Data center deals are heating up in EMEA

AI, social media and cloud computing are driving dealmaking demand in EMEA’s data center subsector. Read full here  »

Data center boom in Latin America calls for accelerating infrastructure investment

In the race to increase the region’s digital capacity, power and water supply pose particularly novel challenges for developers and financiers. Read full here  »

Data centers: Can the demands for increased capacity and energy be met sustainably?

As the demand for data storage grows, so does the need for more data centers with ever-increasing capacity. We examine new ways for developers to reduce energy consumption. Read full here  »

Delivering digital infrastructure in the AI age

The digital infrastructure sector's growth has been fueled by the hyperscalers in recent years. The rapid evolution of artificial intelligence and the metaverse is set to drive this "zeitgeist" sector to new heights. Read full here  »

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_{This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.}

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