Data Center View - January 9, 2025

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NEWS ROUNDUP

DEVELOPMENT: Microsoft and QTS to Develop 1M+ SF of Data Centers in Irving. Irving City Council approves tax incentives for Microsoft and QTS Realty Trust to build seven data centers totaling over 1 million SF. Microsoft plans four facilities, while QTS will construct three adjacent to its existing campus. Beth Bowman, President and CEO of Greater Irving-Las Colinas Chamber of Commerce, highlights the city's focus on attracting high-value industrial projects like data centers.

NUCLEAR: Congressman Urges FERC to Allow Data Centers at Nuclear Plants. Rep. Jay Obernolte, co-chair of the congressional Task Force on Artificial Intelligence, calls on FERC to remove barriers preventing nuclear power plants from selling electricity directly to adjacent data centers. This push follows FERC's recent decision to block a power agreement between Amazon Web Services and Talen Energy for a planned data center campus in Pennsylvania. Obernolte emphasizes the importance of co-located energy production for national security and maintaining the U.S. position in AI innovation.

RENTS: Data Center Rents Surge 20% in Major U.S. Markets. CBRE reports a 20% year-over-year increase in average data center rents across the four largest North American markets. Northern Virginia experienced the most significant jump, with colocation rents soaring 41.6% and power prices up 20.8%. Gordon Dolven, CBRE Director of Americas data center research, attributes the price hikes to unprecedented demand and supply constraints, while Rob Faktorow, CBRE Vice Chairman, notes rising costs are also affecting hyperscale rates.

DEVELOPMENT: Illinois Funds First Black-Led Data Center Project in Chicago. Metro Edge Development Partners, led by CEO Craig Huffman, secures $3.4M in state funding for a five-story, 185K SF data center project on Chicago's West Side. The project, branded as IMD1, will offer 20 megawatts of power and aims to provide low-latency options for nearby users like hospitals and educational institutions. State Sen. Lakesia Collins announces the funding and introduces a bill to support minority business owners in developing data centers in underserved areas.

READ: Hitachi warns of supply shortage in transformers.

DATA CENTER PROPERTY FOR SALE 

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150 Acres | Two Existing Buildings Totaling ~307 ksf | Substation & Infra Paid by Utility | Metro & Long Haul Fiber at Site | Economic Development Credits

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