A❤️469-word🧡under 3-minute💚read
So much energy is being exhausted talking about - and planning - the locations for data centers.
I don’t get it.
From an intellectual property perspective, why does it matter where a data center is located?
All the IP is contained in the various AI models running on, or being trained by, a data center. In other words, the U.S. could be a world leader in AI without having a single data center located on our soil.
That of course is an exaggeration. There are logistical factors associated with data centers. According to Google Gemini location impacts the following:
▶ Latency and speed (performance issue)
▶ Disaster recovery (logistics)
▶ Power (this is everyone’s problem)
▶ Cost (only a problem for the deep-pocketed hyperscalers)
▶ Connectivity (logistics)
▶ Security and regulations (logistics)
▶ Economic and environmental (logistics)
All these are operational issues. They have no impact on market leadership. That’s why hyperscalers will build a data center anywhere they can secure power. And I mean anywhere.
I recently highlighted a story about China building a data center underwater. The theory: it will be easier to cool.
Tech giant Tencent has bult one in the shape of mountain caves. China’s first cavern data center measures 470,000 square meters, has over 30,000 square meters inside tunnel caves, and can house 300,000 servers.
Desert-based data centers are another trend. This includes locations like Nevada, Arizona, and the Middle East.
The dry air reduces the risk of damage and corrosion to the servers and electrical equipment. However, another massive data center need - water to cool the servers – isn’t exactly abundant. Hence the definition of a desert.
Yet the lack of water doesn’t appear to be an insurmountable problem.
And today I read a blurb on Abu Dhabi-based Madari Space putting a data center in space. The CEO cited the significant decline in satellite launch costs as an enabler.
I guess a space-based center may circumvent regulatory issues, but what about disaster recovery and connectivity? I must presume the company believes these logistics are resolvable.
The point is that the market itself is telling us that data centers can be built virtually anywhere.
So why are we allowing these companies to wreak havoc on electric grid planning and potentially dramatically increase the cost of electricity to average people?
I’m not advocating for a moratorium on data center buildouts. However, it does appear that a multitude of options exist that would allow us as a country to be more diligent and thoughtful in our planning.
What we have now is a mad dash by hyperscalers to build so they can gain an advantage over their rivals, and utilities scurrying to profit from the dash.
What seems to be missing is a sufficient analysis of the unintended consequences.
#datacenters #hyperscaler #AI