Datacenter Management Practices

"How to Evaluate a Building for Data Center Conversion" Earlier this week I shared how Chicago developers turned a $12 million office building into a $40 million data center in 15 months. Today, let's talk about what to look for. The Five Critical Factors: 1. Power Infrastructure This is the dealbreaker. Can you increase capacity to 30-50 megawatts? Existing transformers? Proximity to substations? The Chicago building had substantial electrical infrastructure from its trading floor days. Without power capacity, you don't have a deal. 2. Building Structure You need: Wide, column-free floors High ceilings for cooling Floor load capacity for server weight Cavernous layouts The Cboe building was designed for trading floors—which converts perfectly to data centers. 3. Existing Connectivity "This building is very heavily wired from its time as a trading platform," said buyer Daniel English. Look for heavy wiring, fiber proximity, and urban locations near connectivity hubs. 4. Cooling Potential CRE Daily reports liquid cooling is becoming standard as power densities jump from 120 kW per rack today to 600 kW by 2027. Can the building support liquid cooling systems and upgraded HVAC? 5. Urban Location Advantage English explained why urban conversions command premiums: "Just like Amazon last-mile delivery, data centers take less time to deliver when they're close." Low-latency applications—trading, streaming, gaming—pay premiums for urban proximity. The Best Candidates: Former trading floors, financial services buildings, telecom facilities, heavy industrial with power infrastructure. My Take: The Chicago flip proves it: The biggest returns aren't in greenfield development. They're in buying assets where someone else already solved the hard problems and the market hasn't caught up. What building in your market has these five factors? Because while everyone else sees obsolete real estate, you might be looking at a 233% return in 15 months. What are you seeing that others are missing? Sources: "Flip of former Cboe Global Markets headquarters in Chicago shows soaring data storage values" by Ryan Ori, CoStar News, October 23, 2025; "Data Centers Driving Growth In AI And Real Estate" CRE Daily, PrincipalAM research

Increasing both the capacity and number of data centers is fundamental to the growth of AI, but they have become a lightning rod for criticism from local residents and politicians alike as they are causing higher energy prices and using scarce water resources in a growing number of regions globally. On a recent episode of the Bloomberg Switched on Podcast, Tom Rowlands-Rees and Lloyd Arnold, BloombergNEF's Global Power Analyst and Data Center Analyst, respectively, discussed “What Really Determines Where Data Centers Get Built”. The decision about where to site data centers is becoming more complex, with decision makers having to factor in energy & water availability and cost, as well as land permitting. However, other criteria are becoming more important, including taxes, fiber connectivity, and existing ecosystems, which are impacting competitiveness, given that tech companies remain focused on sustainability and net zero initiatives. Key takeaways from the podcast include: · Power constraints are now the biggest bottleneck - Many regions face grid congestion, long interconnection queues, and rising competition for electricity from AI, electrification, and industrial loads. Access to reliable, low‑carbon power is becoming a decisive factor in site selection. · Regional competitiveness is diverging - Markets with streamlined permitting, strong renewable‑energy pipelines, and supportive policy frameworks are pulling ahead. Others are struggling with regulatory complexity, land scarcity, or slow infrastructure build‑out. · Construction timelines are lengthening - Supply‑chain pressures, skilled‑labor shortages, and stricter environmental reviews are extending development cycles. Speed to market is becoming a differentiator — and a challenge. · Geopolitics and resilience matter more than ever - Operators are diversifying locations to reduce exposure to geopolitical risk, extreme weather, and single‑grid dependency. Redundancy is becoming a strategic asset. · Permitting and land availability remain major hurdles in dense metros, pushing operators toward secondary markets. · AI workloads are reshaping design, driving higher rack densities[JB1] , new cooling strategies, and unprecedented energy demand forecasts. · Sustainability pressures are rising, with operators expected to prove real emissions reductions, not just offsets. Data center growth will continue, although some regions will be slower due to the challenges mentioned above. However, with so much capital being invested into the AI sector, we should expect that data center hyperscalers will be willing to overpay for the power and water needed to start the permitting and building process.      Listen on Apple Podcasts: https://lnkd.in/gSw5GwKM #ai; #datacenters; #hyperscalers; #renewableenergy; EcoTech Capital Cy Obert Jeffrey Lipton

Grids are a bottleneck for data centers. Data centers are a challenge for grids. But is there a win-win solution? Multiple European governments have recently stepped up to attract data center investments and, at the same time, reduce their potentially negative impacts on energy markets and infrastructure. To name a few examples: ▶️ UK: AI Growth Zones. I covered these in previous posts, it’s a flagship program that marries power demand and supply, optimizing grid usage and offering multiple incentives for developers ▶️ France: EDF is offering data center sites. 2 GW of grid-connected sites, ready to use, with an electricity supply offer included ▶️ Germany: National data center strategy published 2 weeks ago. Improving grid connection procedures and data availability, promoting flexible connection agreements. But also pushing for better efficiency and clean power supply. ▶️ Ireland: Introducing Green Energy Parks as part of the Large Energy User Action Plan, incentivizing co-location of data centers, renewables and storage ▶️ Spain and Portugal: expanding flagship hubs like Aragon and Start Campus with ~100% renewable power supply (also on-site), plus launching demand tenders ▶️ Italy: passing decree 21/2026 streamlining data center permitting and grid connection These solutions incentivize the placement of data centers close to renewables (+storage), for the cleanest and cheapest power supply, minimum impact on national power grids, and quickest deployment times. A win-win for developers, grid operators and governments. Or am I too optimistic? More on grids and data centers in tomorrow’s newsletter.

The race for data center development is one our customers can’t afford to lose. Avoiding suboptimal locations not only saves excessive study costs but also saves time, keeping developers competitive. In a Cleveland area case study, we highlight a siting workflow that successfully qualifies and ranks over 600,000 parcels in minutes, quickly identifying fewer than 20 optimal sites, ultimately pitching 2 sites ideal for hyperscale sized development. While certain criteria are nonnegotiable when it comes to siting like sufficient withdrawal capacity, available transmission, adequate buildable acres and access to fiber-optic lines, evaluating sites on additional criteria is what really separates the exceptional sites from the rest. Enverus, Enverus Intelligence® Research

Most people analyze data centers like real estate. That is the mistake. After reviewing projects across the U.S., Europe, the Middle East, and Asia, one pattern keeps repeating. About 20 percent of variables explain 80 percent of outcomes. And those variables are not what most people focus on. The five that matter most are: 1. Power first. A data center is a machine that converts electricity into compute. No reliable power, no economic project. 2. Land control next. Not acreage, but control. Zoning certainty, expansion rights, water access, and fiber proximity determine whether a site becomes a long-term campus or a stranded asset. 3. Then capital. These are front-loaded projects. Impatient equity or unrealistic debt timelines can sink even strong projects. 4. Demand matters, but differently. Forecasts do not finance infrastructure. Contracts do. AI drives demand, but also volatility between training clusters and distributed inference. 5. Finally, sequencing. Discipline here separates winners from losers. The correct order is clear. Reverse it, and risk compounds. Underwrite power pathways and capital alignment before square footage. That is where the real returns come from. The winners are the ones who see the signals others ignore. Infrastructure strategy is not about buildings, It is about timing, control, and certainty. Read the article below. #datacenters

🇮🇳 India’s Data Centre Growth – Snapshot Current capacity: ~1.2 GW Projected by 2030: ~5 GW Required Investment: ~USD 22 billion (Source: Colliers India) Current Hubs: Mumbai, Chennai, Delhi-NCR Emerging Hubs: Hyderabad, Coimbatore, Pune, Ahmedabad --- 🚀 Drivers of Growth AI and Generative AI Workloads Cloud and Edge Computing 5G rollout and IoT expansion Digital India push (e-governance, UPI, ONDC, etc.) Data localization mandates (DPDP Act 2023) Hyperscale demand from global tech giants --- 🧠 Strategic Advice for Stakeholders 1. Investors & Developers Diversify Geography: Mumbai is saturated; invest early in Hyderabad, Coimbatore, Pune, and Kolkata where land and power are still affordable. Colocation vs Hyperscale: Develop flexible colocation models catering to Tier-II startups and enterprises alongside hyperscale modules for cloud majors (AWS, Azure, Google). Green Data Centres: Focus on renewables, waste heat recovery, and AI-powered cooling to reduce OPEX and meet ESG commitments. Land Banking Now: Acquire land near RE power corridors or upcoming substations to mitigate future access and regulatory delays. 2. Power Infrastructure & Utility Players Build Dedicated Power Corridors: Ensure redundant and resilient grids with Tier IV reliability. Explore Captive RE Models: Enable direct RE connectivity (solar/wind farms in Gujarat, Rajasthan, Karnataka). Battery Storage Systems: Plan early for BESS (Battery Energy Storage Systems) to manage grid stability for AI workloads. 3. Government & Urban Planners Single Window Clearances: Fast-track environmental, zoning, and connectivity clearances. PPP Models for Tier-II Cities: Offer plug-and-play data centre parks with built-in utilities and dark fibre. Skill Development: Launch skilling hubs in electrical, mechanical, BMS, IT, and HVAC specific to data centres. 4. Telecom & Connectivity Providers Expand Redundant Fibre Rings: Enable low-latency links for AI and real-time analytics demands. Edge Data Centre Networks: Invest in micro data centres closer to users, especially in Tier-II/III towns. --- 🏗️ Big Players Making Moves AdaniConneX (Adani + EdgeConneX JV): Planning 1 GW across India, including Chennai, Noida, Hyderabad. Reliance Jio: Investing heavily in cloud + AI infrastructure, with new green data centre parks expected. NTT, STT GDC India, CtrlS, Web Werks, Sify: All expanding footprint or forming RE-linked data centre clusters. --- ⚡ Key Challenge: Power Availability & Reliability AI workloads may require up to 5–10x more power per rack Grid capacity expansion is not keeping pace in some regions. Developers should consider on-site substations, gas-based backup generation, or green open access models.

Where Would You Build a Data Center? 🚀 If you could put a data center anywhere, where would it be? Some companies have taken that question very literally and explored wild locations: 🌊 Underwater – Microsoft ‘s Project Natick tested submerged data centers for natural cooling and sustainability. 🚢 Floating on the ocean – Nautilus Data Technologies built barge-based DCs to cut real estate and energy costs. ⛰️ Inside a cave – Some data centers operate in underground bunkers for security and temperature stability. 🌖 On the Moon – Lonestar Dataholdings was to launch an Intuitive Machines mission this past week onboard the Falcon9 rocket from SpaceX carrying a “mini data center” aiming to safeguard valuable data ❄️ Antarctica – A forum discussion gave me a good laugh: “Why not just plop data centers in Antarctica for free cooling?” The answer? Power and connectivity still matter—unless you want a frozen, useless server farm. 📍 But Where You Build a Data Center is All About Balance: ⚡ Power – Cheap, stable electricity is 🔑. Hyperscalers love locations near hydro, nuclear, or solar grids. 📡 Connectivity – Close to internet exchange points (IXPs) and submarine cables for low latency. 🌪 Disaster Risks – No floods, earthquakes, hurricanes, or unstable ground (bad soil = bad idea). 🏛 Regulations & Incentives – Some governments offer 💰 tax breaks, others pile on restrictions and fees. 🛠 Talent & Logistics – Data centers do not run on their own! Remote sites struggle with hiring, and delays = 💸 lost. Sites near airports & cities win. 🌱 Sustainability – DCs consume massive ⚡ & 💧. Operators are adopting eco-friendly practices, such as using renewable energy sources and recycling waste heat, to reduce their environmental footprint. #datacenter #siteselection #AIinfrastructure #compute

The AI data center dilemma: Upgrade or start from scratch Summary: The rapid growth of AI is driving unprecedented power demands for data centers, compelling operators to choose between upgrading existing facilities or building new ones. Both options require careful analysis to ensure future scalability and efficiency. Key Considerations: 1. Infrastructure Needs: Cooling Systems: Advanced HVAC and liquid-immersion cooling are essential to manage heat from AI workloads efficiently. Power Infrastructure: Reliable, clean power delivery with robust backup systems is critical to prevent costly downtime. Energy Distribution: High-voltage DC architectures and real-time monitoring enhance energy efficiency and performance. 2. Structural and Design Requirements: Load Capacities: Higher densities demand reassessment of structural loads due to increased cooling and power components. 48V Power Architecture: Transitioning to 48V systems optimizes thermal management, reduces conversion stages, and supports high-density needs. 3. Cooling Innovations: Liquid-Immersion Cooling: Reduces reliance on traditional air cooling, improving space utilization and energy costs. Three-Phase Power Systems: Minimize energy losses and stabilize operations by evenly distributing loads. 4. Decision Factors: Upgrading: Viable for facilities with scalable infrastructure, offering cost-effective improvements. New Builds: Best for integrating cutting-edge solutions when existing systems lack scalability or efficiency. 5. Hybrid Approach: Combining upgrades and new builds can deliver optimal ROI by balancing cost and scalability. Conclusion: Operators must evaluate their goals, budgets, and scalability needs to address AI-driven demands effectively. Tailored solutions, including hybrid approaches, ensure long-term success in a rapidly evolving landscape. #DataCenters #AI #Sustainability #PowerInfrastructure #LiquidCooling #HVAC #EnergyEfficiency #TechInnovation #48VArchitecture #FutureProofing #DataCenterCooling #AIInfrastructure https://lnkd.in/g6Xryy58

The AI boom is a "build-out moment." For investors and data center developers, the choices made this decade will determine if AI accelerates climate progress or becomes an unsustainable burden. With data center energy use projected to double or quadruple by 2030, sustainability is now a core risk-mitigation strategy. To future-proof your portfolio, here is what must be done before finalizing a location or design : Strategic Siting (Smart Siting) : - Analyze Hydrological Stress : Avoid water-scarce regions and favor areas with low water-stress profiles to minimize conflict with local communities. - Assess Grid Carbon Intensity : Prioritize locations with a clean electricity mix (nuclear, hydro, or windbelt states) and verify the availability of "additional" renewable capacity. - Evaluate Infrastructure Stability : Ensure local grids can handle high-density loads and support energy storage integration to balance intermittent renewables. Circular & Efficient Design : - Incorporate Advanced Cooling : Move beyond air cooling; liquid immersion or direct-to-chip systems can slash energy and water use by up to 50%. - Design for Circularity : Utilize "green" low-carbon concrete and steel, and adopt a "Design for Disassembly and Reuse" (DfDR) philosophy. - Mandate Heat Recovery : Plan to capture waste heat for district heating or industrial processes, transforming the facility into a community asset. - Perform a Cradle-to-Grave LCA : Conduct a full Life Cycle Assessment to account for embodied carbon, avoiding "environmental burden-shifting." How are you balancing the surge in AI demand with your ESG commitments? Let’s discuss in the comments. #SustainableComputing #DataCenterInvesting #GreenTech #AIInfrastructure #CircularEconomy

Data center growth exploded because existing facilities can't handle modern power density requirements. Your AI workload needs 40kW per rack. Most facilities max out at 5-10kW. The math doesn't work. My global experience with deployments taught me this constraint varies by jurisdiction. Dubai caps at 5kW maximum. Northern Virginia allows 10kW standard. Same workload, different regional capabilities. But power density is only half the problem. You also need connectivity infrastructure that can handle your applications capacity needs and latency requirements. Finding facilities with both adequate power AND network capacity becomes the real bottleneck. Not every data center has the same on-net providers and access to your preferred IX (Internet Exchange). Smart site selection matches workload requirements to facility capabilities during contract negotiations. Emergency response access requirements, utility grid limitations, and network connectivity all factor into what's actually deployable versus what vendors specify. The facilities that can handle modern density requirements with proper connectivity are scarce. That's why the data center capacity shortage isn't going away anytime soon. #DataCenterCapacity #PowerDensity #ConnectivityInfrastructure #SiteSelection #ExecutivePlanning #RealDeal #TrustedForce