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Data Centers in 2023: Lessons Learned

2023 was the year of resilience in data centers. Owners and operators tackled environmental sustainability, power use, and site constraints and demonstrated their ability to adapt and thrive in the rapidly evolving industry landscape. As we look at some of the themes that emerged this past year, it is clear that data centers are embracing innovation to meet challenges and build resilience to address the ever-changing future of the industry.

Site constraints

Data center owners and operators who cannot build a dedicated data center are forced to work with the constraints of existing facilities, including repurposed office space and older buildings. These challenges mean difficulties fitting modern IT infrastructure, including cooling and power.

Operators looking to build new facilities faced two specific challenges in 2023:

  • Community resistance due to the power and water requirements that draw away from community resources.
  • Supply chain challenges that are impacting construction overall.
  • Owners built bigger and bigger and more specialized data centers, such as Meta’s 5-building, 2.5 million square foot data center in Mesa, AZ.

Lessons learned:

  • Modular and scalable designs to enable expansion and retrofitting of existing facilities.
  • Innovative cooling (liquid-to-chip, liquid immersion, hot/cold aisles) improves efficiency in compact data center floorplans.
  • Collaboration with local authorities is critical to address power and water use concerns and be responsible neighbors.

Sustainability

Data center owners have embraced the idea of sustainability—focusing on improving energy efficiency and reducing their carbon footprint.

  • Climate and cooling design are critical, and water use continues to be challenging for those relying on evaporative cooling systems.
  • Some data centers addressed this in 2023: Since the end of 2022, Google has been sharing water use data as part of its commitment to responsible water use.
  • Data centers continue to be power hogs: a hyperscale facility consumes between 20 and 50 MW per year, enough electricity to power 37,000 homes.
  • Meta’s new Mesa AZ campus will be supported by 100% renewable energy and is slated for LEED Gold certification.

Lessons learned:

  • Optimizing resource use is crucial for maintaining sustainability.
  • Transparency and sharing of key performance metrics and environmental data are critical ways to build trust with the community and demonstrate a focus on sustainability.
  • Energy efficiency is a competitive advantage.

Power

Power use and efficiency continue to be top of mind. As technology continues to evolve and the use of AI grows, McKinsey forecasts a surge in data center demand, which is projected to escalate to 35 gigawatts by 2030 from the existing 17 gigawatts recorded in 2022.

  • Some data centers turned to on-site power to address power use issues, including Microsoft, which plans to build a massive 170-megawatt gas-fired power plant and use 21 smaller diesel generators at a data center in Dublin. Ireland.
  • Equinix tested hydrogen power generation for a data center in Singapore.

Lessons learned:

  • It’s critical to prioritize scalable infrastructure and power solutions to accommodate growing energy needs while maintaining efficiency.
  • Diverse power generation methods can enhance reliability and reduce environmental impact.
  • Robust backup power systems, including both traditional and renewable sources, will help mitigate the risks associated with power outages and fluctuations.

2023 was a year marked by innovation, resilience, and commitment to sustainability in data centers. In 2024, owners and operators will build on these insights. Contact us today to learn how we can help you build your data center to meet the future.