The scale of data center growth, as outlined in a recent Blackstone report, is truly staggering. It showcases the immense power of leading technology companies, coupled with the unparalleled project finance capabilities of the world's largest private asset managers.
$2 trillion will be spent across world on data centers in next 5 years, led by the US where half the spend will take place.
In 2024, 5,000 MW of datacenter capacity will be added in US
Datacenter's power needs are growing so humungous that they are requiring mega-tech companies and world's largest asset managers to lead the funding of massive nuclear energy plants, since solar-plants and onshore wind farms can't fulfill all their power requirements.
Rendering of 500-MW Nuclear Reactor, Google is Developing With Kairos Energy
Will Energy Efficiency Gains In Computational and Climate Tech Advances Be Enough?
Even with the gains in the energy efficiency of computer processing (that Jensen Hung and others speak of) and advances in renewable energy technologies, it will be challenging to keep up with the massive power requirements of datacenters.
Already persevering through nuclear investments, wouldn't be surprised if Amazon, Google, Meta, Apple start funding stalled offshore wind projects, along with transmission equipment manufacturers who are ramping up to growth that was hardly predicted five years ago. Similar to how Apple invested in Corning to scale iPhone manufacturing, during last tech revolution.
Successfully building out ever larger Megascale Datacenters will require a combination of the boldness that China has demonstrated in pursuing the largest renewable energy projects in the world, including a 43-GW offshore windfarm being built in the Taiwan Strait, with the leading infrastructure project finance solutions that the US leads the world in.