Data Center View - November 21, 2024

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NEWS ROUNDUP

DEVELOPMENT: Sam Altman Explores Custom Data Centers for OpenAI. OpenAI CEO Sam Altman is exploring proprietary data centers to support the next generation of AI models. Altman hinted during a recent AI summit that traditional colocation models may not meet OpenAI's performance and efficiency requirements.

JOINT VENTURE. Crusoe Energy, Blue Owl, and Primary Digital Announce $3.4B Texas Data Center Plan. Crusoe Energy Systems, in partnership with Blue Owl Capital’s Digital Infrastructure Fund and Primary Digital, unveiled plans for a $3.4 billion data center in Texas. The JV will fund a 206-megawatt, 998,000 SF data center built and operated by Crusoe at the Lancium Clean Campus in Abilene, TX. The project is 100% leased to a Fortune 100 hyperscaler. The deal team included Chase Lochmiller, CEO of Crusoe Energy, Marc Zahr co-president of Blue Owl Capital, and Bill Stein, CIO of Primary Digital Infrastructure. A Newmark team of Jordan Roeschlaub, Brent Mayo, Andrew Warin, and Chase Tagen arranged the JV.

DEVELOPMENT: Culpeper County Positioned as the New Ashburn in Data Center Growth. As Ashburn, Virginia faces increasing restrictions on data center development, Culpeper County emerges as a promising alternative for hyperscale developers. Local leaders aim to replicate Ashburn’s success while avoiding its zoning challenges.

SLOWDOWN? Report Predicts Data Center Slowdown Amid Ongoing Expansion. Despite a gold rush for data centers, growth may be cooling, according to a new report highlighted by Bisnow. “The level of data center planning starts remains robust, it is simply the rate of growth that is moderating after surging in recent months. Data center planning accounted for roughly 70% of total office planning activity in October (as traditional office activity continues to be weak) — and we expect the sector to continue to be strong going forward.” -Sarah Martin, Dodge Construction Network

UTILITIES. Data Center Boom Pushes Utilities to Innovate Amid Surging Demand. “Data center lease deals signed in 2023 alone had an impact equivalent to adding a second New York City to the power grid, while the industry’s share of U.S. power consumption is expected to leap from 2.3% last year to 6.6% in 2028.” -Dan Rabb, Bisnow

DATA CENTER PROPERTIES FOR SALE

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28 Acres | Light Industrial Zoning | Georgia Power - 230 kV Lines Adjacent | Room for On-Site Substation | Water/Sewer | Fiber Connectivity | State and Local Incentives

24 Acres | Light Industrial | Georgia Power 500 kV and 230 kV Adjacent | Room for Substation | Water/Sewer Onsite | State and Local Incentives

DATA CENTER PROPERTIES FOR LEASE

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10,608 SF | Heavy Redundant Power | 1200 amp Trip Breaker | Backup Generator (600 kV) | Concrete Walls & Ceiling | 50 Ton Cooling Capacity | Des Moines MSA Near I-35, I-80, I-235

5 MW Available Immediately | Additional 5 MW Available in 6 Months | (2) 2500 kVA Transformers On-Site | Comes with Data Center Modules | Diverse Fiber Nearby

ONE MORE THING

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