The Future of Data Centers with TD Cowen

The global data center industry is evolving rapidly, fueled by increasing demand for power, sustainability initiatives, and the growth of emerging markets. In this panel discussion, datacenterHawk Regional Directors from North America, EMEA, and Latin America (LATAM) share their perspectives on the trends shaping the industry in 2025. North America continues to lead the data center market, with hyperscalers employing a dual approach: self-builds alongside third-party colocation deployments. Power availability remains a critical challenge, driving exploration of natural gas and renewable energy solutions. Emerging submarkets like Charlotte, Kansas City, and Minneapolis are gaining attention, complementing the robust activity in established hubs like Phoenix, Dallas, and Northern Virginia. EMEA remains a dynamic region for data center growth. The Nordics stand out for their access to renewable energy and lower operating costs, driving significant hyperscale deployments. AI-driven demand is shaping market trends, with requirements often exceeding 10 MW. Secondary markets such as Spain, Italy, and Eastern Europe are emerging as key players, leveraging infrastructure investments to support large-scale projects. Sustainability initiatives remain central, with commitments to carbon neutrality by 2030 shaping regional strategies. Latin America is rapidly emerging as a high-growth region in the global data center landscape. Brazil leads the charge, with Sao Paulo serving as a primary hub, supported by its strong renewable energy resources and established infrastructure. Secondary markets like Rio de Janeiro and Bogota are gaining traction, driven by hyperscaler interest and the increasing digitization of the region’s economies. While challenges such as power constraints and high import tariffs exist, LATAM markets are innovating to attract investment, including leveraging renewable energy to meet sustainability goals. Power Availability: Reliable and sustainable power sources are becoming a central focus, prompting shifts to regions with robust energy resources. Emerging Markets: Secondary and tertiary markets, such as Rio de Janeiro, Bogota, and Spain, are growing rapidly and attracting hyperscalers. Technological Innovation: The demand for high-density computing, driven by AI, is pushing advancements like liquid cooling technologies to the forefront. Sustainability: The commitment to carbon neutrality by 2030 is reshaping data center design, energy sourcing, and operational strategies across all regions. Join us as we explore the exciting changes shaping the future of data centers in 2025.

Bringing together Ed Socia, datacenterHawk's North American Insight Director, and Mike Elias, the Senior Equity Research Analyst at TD Cowen, we've entered an intriguing dialogue revolving around the future of the data center industry. The riveting video discussion elucidates the evolution of the industry, the impact of AI, and the potential growth that could reshape the landscape in the coming years. The Journey of Mike Elias into Data Center Industry The dialogue begins with Mike Elias, the seasoned Equity Research Analyst from TD Cowen, sharing his professional voyage into the data center industry. He sketched out his impressive journey from the realm of engineering to equity research. The viewers could clearly perceive his strong passion for data centers and his profound knowledge in this field, especially when he elucidated the changing needs for digital infrastructures in recent years. Shift in the Demand for Digital Infrastructure Our discussion further delved into the evolution of demands for digital infrastructure, particularly in the post-Covid era. Mike emphasized the escalating need for data center capacity in today's digitized world. He also stressed the role of hyperscalers as the prominent drivers of market demand and the changing requirements for larger data centers. Potential Impact of AI on Data Centers The conversation went on to explore the potential impact of AI on data centers. Mike shared a sense of optimism about the diverse applications of AI across various sectors in future and highlighted the positive implications for society at large. The grand vision he shared emphasized the long-term benefits for the data center sector as AI investments continue to proliferate. Changing Dynamics of Capital in Data Centers Towards the end, Mike shed light on the changing dynamics of capital in the data center domain. He discussed the implications of interest rate changes on data center pricing and the potential for public companies to re-emerge in the market. The need for capital, intended for long-term support to foster the growth of the sector, was highlighted. In conclusion, the insightful dialogue between Ed Socia and Mike Elias offered a valuable peek into the future of data centers. As the industry continues to evolve, the prospects for growth and innovation appear promising. Certainly, this sector will continue to offer abundant opportunities for investment and development in the foreseeable future.

In a recent video discussion between David Liggitt, Founder and President of datacenterHawk, and Marcos Paraíso, Vice President of Business Development of Modular Data Centers, the future of data centers was explored. Marcos shared insights into Modular Data Centers' vision and approach to addressing the growing demand for data centers in the market. This blog delves deeper into the key points discussed in the video and highlights the potential trends shaping the data center industry. Vision and Approach Modular Data Centers' main thesis revolves around addressing the continuous growth of demand for data centers in the market. Marcos emphasized the need for a different construction model to meet the increasing capacity and power density requirements of data centers. By focusing on prefabricated data centers that can be built and delivered quickly, Modular Data Centers aims to bridge the gap between capacity demand and traditional construction methods. This innovative approach allows for flexibility and customization to cater to specific client requirements, whether for smaller edge data centers or large-scale AI facilities. Flexibility and Market Opportunities Flexibility is a key theme in the data center industry, especially with the evolving demands of technologies like AI and liquid cooling. Modular Data Centers' ability to adapt to changing requirements and provide scalable solutions positions them well in the market. The Latin American market, in particular, presents significant opportunities for growth, with a focus on AI-driven demand and clean energy solutions. By leveraging the region's power generation capabilities and skilled workforce, Modular Data Centers aims to capitalize on the potential for investments in AI infrastructure in Brazil and other Latin American countries. Speed to Market and Supply Chain Innovation One of the key advantages of Modular Data Centers' approach is the speed to market it offers. By streamlining construction processes and utilizing controlled environments for prefabrication, the company can deliver data centers up to 60% faster than traditional construction methods. Additionally, innovations in the supply chain, such as developing custom switchboards and strategic partnerships with key providers, ensure a reliable and efficient procurement process. The continuous improvement of product offerings, from small modular solutions to large-scale AI-ready architectures, demonstrates Modular Data Centers' commitment to evolving with the industry's changing needs. As the data center industry continues to evolve rapidly, companies like Modular Data Centers are at the forefront of driving innovation and transformation. The discussion with Marcos Paraíso sheds light on the company's vision for revolutionizing data center construction and meeting the demands of a dynamic market. With a focus on flexibility, speed to market, and strategic partnerships, Modular Data Centers is poised to make a significant impact in the industry in the coming years. Stay tuned for more updates on the latest trends and developments shaping the future of data centers.

Nestled in bustling Newark, New Jersey, lies 165 Halsey Street, a towering testament to evolution and innovation. What was once a Macy's department store has been masterfully reimagined into an interconnected carrier hotel and colocation data center. This transformation didn't happen overnight, but through successive waves of planning, development, and strategic investments. Let's take a closer look at the unique history, striking design, and robust infrastructure that distinguishes this facility from others in the data center realm. The Fascinating Transformation of 165 Halsey Street From the moment 165 Halsey Street was purchased as an empty structure in the 90s, its destiny to become a major data center was set. Stepping up to the plate, it's now a sprawling facility with over a million square feet . It accommodates 450,000 square feet of owner-operated Colo facilities, boasting a total capacity of 25 to 30MW, and with an ambitious blueprint for expansion up to 80MW. Riding the Wave of the Future - The Robust Infrastructure of 165 Halsey Street The building's infrastructure goes above and beyond to ensure it's prepared for whatever the future brings. The 14-story structure is equipped with dedicated data center floors and a power capacity teetering around 80MW, ready for any intensity of demand. Massive investments in a 4000-ton chiller evaporative cooling plant and a 15MW upgradable generator plant secure its ability to scale and adapt to emerging technologies and their specific cooling needs. Strategic Location and Connectivity - The Geographical Advantage of 165 Halsey Street Strategically located at the heart of the New York metropolitan area, 165 Halsey Street offers connectivity and accessibility. Newark's proximity to major financial and commercial hubs makes it an ideal site for businesses requiring low-latency connections and robust internet infrastructure. The facility boasts an extensive fiber network with access to over 60 independent carriers, providing seamless interconnectivity options that cater to diverse business needs. This advantageous positioning not only enhances 165 Halsey Street's appeal to enterprises seeking reliable data solutions but also reinforces its status as a critical node in global digital communications networks. As 165 Halsey Street relentlessly evolves to keep pace with an ever-changing market, its commitment to customer service, infrastructure investment, and flexibility remains unwavering. This commitment cements its reputation as a pioneering data center and carrier hotel in the region.

In a technology-driven world, the data center industry continues to thrive and evolve. Recently, Atul Roy, CEO of Hudson IX & Head of Telecoms Infrastructure at Cordiant, and Ed Socia, North America Insight Director at datacenterHawk, joined forces for a comprehensive discussion about this thriving industry. Their conversation traversed topics including the unique history of 60 Hudson, the evolution of data center requirements, the challenges of power access, and the intriguing concept of edge computing. An Odyssey Through Time: The History of 60 Hudson Atul Roy gave us a glimpse into the past as he narrated the intriguing history of 60 Hudson. Originally a Western Union building from the 1920s, 60 Hudson has morphed into one of the most connected carrier hotels in the U.S., boasting over 300 carriers. This phenomenon, dubbed the "snowball effect," has rocketed 60 Hudson into the limelight as a key interconnection hub within the data center industry. Shifting Sands: The Evolution of Data Center Requirements Our conversation then turned towards the changing dynamics of data center requirements, focusing particularly on the increasing rack densities. Roy shed light on this shift from lower to higher densities, stating that new data halls are now being designed to handle 40 to 50 kW per rack. He underscored the importance of balancing efficiency and customer experience while satisfying these burgeoning customer demands - a crucial priority for Hudson IX. Power Play: Access and Infrastructure Challenges A key part of the conversation revolved around the persistent challenge of power access in the data center industry. Roy delves into the power constraints faced in regions like Northern Virginia and Santa Clara and stresses the importance of careful asset sourcing to mitigate power-related issues. The duo also inspected how power dynamics impact data center operations and discussed the urgent need for robust power infrastructure. As we draw the curtains on this comprehensive chat with Roy and Socia, it's clear that significant evolution awaits the data center industry. The intricate interplay between data centers, fiber, and towers will continue to mold the industry's landscape, focusing on meeting evolving customer requirements and managing infrastructure challenges. This enriching discussion has illuminated the complexities and opportunities that await in the expansive world of the data center ecosystem.

Annemarie van Zadelhoff hosts Andrew Fray on a journey through the integral aspects of cybersecurity, sovereignty, and climate change in data centers. This conversation threads through the lesser-discussed areas while emphasizing the criticality of these issues in the current data center landscape. Cybersecurity Threats in Data Centers Data centers are not immune to the ever-evolving landscape of cybersecurity threats. Malware, denial of service attacks, ransomware, and hardware vulnerabilities pose significant threats. State-level actors, cause-related interruptions, and criminal activity add to these risks. The discussion also delves into the unique challenges of monitoring and managing data security in multi-tenant data centers. Data Sovereignty Challenges The conversation further unravels concerns about data protection laws, cross-border data flows, and compliance frameworks in the context of data sovereignty. Issues associated with data ownership, control, and visibility in multi-tenant environments take center stage. The regulatory frameworks like GDPR and the UK-US Privacy Shield's impact on data sovereignty are also thoroughly discussed. Adapting to Climate Change in Data Centers Last but not least, the discussion transitions to the implications of climate change on data centers. The risks associated with extreme weather events, heat waves, and flooding on data center operations are highlighted. The conversation pivots around the importance of risk assessments, distributed architecture, and building resilience to address the impacts of climate change. Challenges in preparing for and mitigating climate-related risks in data center infrastructure are also explored. In conclusion, the discourse brilliantly highlights the critical discussions around cybersecurity, data sovereignty, and climate change in data centers. The conversation underscores the need for proactive measures to tackle the ever-evolving challenges in the industry. The insights shared by Annemarie van Zadelhoff and Andrew Fray illuminate the complex landscape of data center operations and the necessity of staying ahead of emerging threats and environmental risks.

In an enlightening recent dialogue, our LATAM Regional Director, Steve Sasse, engaged in conversation with Cleber Braz, the SVP of Business Development and Operations at Scala Data Centers. The comprehensive discussion revolved around the operational philosophy, prevalent challenges, prospective expansion plans, and their commitment to customer service of Scala Data Centers in the Latin American region. Unveiling the Strategic Approach Under the adept leadership of Cleber Braz, Scala Data Centers has been strategically maneuvering the increasing need for data center services in Latin America. Cleber laid emphasis on the blend of diverse talents in their team, lauding their customer-focused approach. It's this unique perspective that makes Scala unique, enabling their keen understanding and catering to customer needs in the data center industry. The Efficiency Factor A predominant point of discussion was the unique ability of Scala to deliver promptly and effectively. This efficiency transcends both traditional construction methods and modular solutions. The company's keen focus on streamlining processes, and balancing investments and revenues, enables them to cater to their clientele's needs swiftly. With a flexible approach to delivery methods, Scala is primed to adapt to any market demand or customer preference. Eyeing the Future Cleber also spoke about Scala Data Centers' forward-thinking stance which includes future expansion plans and readiness to support emerging technologies like Artificial Intelligence (AI). With investments in tangible power infrastructure and strategic alliances, Scala is positioning itself to be a crucial player in the Latin American AI and data center market. Scala Data Centers’ growth trajectory and continuous innovation are a testimony to their commitment to customer satisfaction and market trend anticipation. With concrete plans for efficiency improvement, enhanced flexibility, and strategic foresight, Scala is well positioned to make notable contributions to the dynamic data center industry in the Latin American region.

In the ever-growing field of the data center industry, industry leaders, Damon Lim, APAC Regional Director at datacenterHawk, and Raymond Tong, President of APAC at Vantage Data Centers, recently sat down to discuss key insights and trends. Their conversation focused on the growth of hyperscale data centers, the impact of AI on digital infrastructure, and the role of customer relationships in driving success. Expansion and Customer-Centric Strategy in the Asia-Pacific Region The unstoppable growth of hyperscale data centers in the Asia-Pacific region was a central theme in the discussion. As Tong explained, Vantage Data Centers' rapid expansion in this region showcases their commitment to meeting the demands of their customers. With a background in diverse sectors, Tong stressed the importance of agility and strategic planning, making it clear that customer-centricity is at the heart of their business. Customizing Data Center Designs for Regional Requirements As we delve deeper into the conversation, we find that cloud computing and AI technologies are creating both challenges and opportunities in the Asia-Pacific data center market. Tong anticipates double-digit growth in the region due to AI and machine learning adoption. He underscored the need to customize data center designs to meet various countries' specific requirements, thus ensuring cost-effective and timely data center infrastructure deployment. Innovations in Cooling Solutions and Future Projects Deeper still into their industry discussion, Tong shares insights into Vantage's innovative approach to data center design. He discussed the evolution of cooling solutions to accommodate high-density GPU racks for AI applications, hinting at both air-cooled and liquid-cooled solutions to meet customers' evolving needs. Looking to the future, Tong mentions upcoming projects like a 256MW campus in Malaysia, making it clear that Vantage stays on the cutting edge of industry innovation. To sum up, the data center industry in the Asia-Pacific region is rapidly evolving, with companies like Vantage Data Centers playing a vital role in meeting the increasing demand for digital infrastructure. Their ongoing focus on customer relationships, innovation, and strategic planning positions Vantage Data Centers for future growth and ongoing success in the dynamic data center market.

Join Steve Sasse, our LATAM Regional Director, and Nelson Fonseca, President, Data Centers at Cirion Technologies, as they deep dive into the evolving landscape of the data center industry in Latin America. The conversation takes us through Nelson's enriching journey in the domain, Cirion Technologies' growth trajectory, and their strategic outlook on renewable energy and ESG policies. Nelson Fonseca’s Journey Nelson Fonseca's robust experience began with network infrastructure and extended to his significant engagement with TerraMark. During his tenure there, he played a pivotal role in building the map of the Americas, which was a crucial project that laid the groundwork for extensive connectivity across the continent. This achievement subsequently led to the proliferation of business under Verizon's umbrella. His journey through these various roles gives us an invaluable perspective on the industry's evolution, highlighting his ability to adapt and drive growth in a rapidly changing technological landscape. Nelson's contributions have not only shaped his career but have also had a lasting impact on the broader telecommunications industry. Growth & Expansion Plans of Cirion Technologies Cirions' future strategy includes the development of new data centers in Santiago, Lima, and Sao Paulo. Their aim to build larger data centers to cater to the rising demand from hyperscale operators and corporate entities stands testament to their dedication to facilitating efficient and low-latency connectivity in the region. These new facilities are expected to feature the latest advancements in data storage and processing technology, ensuring robust security measures and scalability options. By investing in these infrastructure projects, Cirions is committed to supporting the digital transformation of businesses and enhancing the overall technological landscape in Latin America. Renewable Energy and ESG Cirion focuses on the company's commitment to sustainability and customer satisfaction. Their strategy to incorporate renewable energy sources in their new data centers resonates with the increased focus on environmental considerations in the industry. By leveraging solar, wind, and other renewable energy options, Cirion aims to reduce its carbon footprint significantly. Additionally, their customer-centric approach ensures that clients receive high-quality services while also contributing positively to the environment, setting a benchmark for others in the industry. As we look towards the horizon, Cirion Technologies, under Nelson Fonseca's visionary leadership and the company's robust ecosystem, is poised for continued expansion in Latin America. By aiming to foray into untapped markets like Peru and Argentina, Cirion Technologies is on the path to reinforcing their position as a regional stalwart in the data center industry.

David Liggitt, the founder of datacenterHawk, recently had the opportunity to sit down with Raymond Hawkins, the Chief Revenue Officer of Compass Datacenters. In this engaging discussion, Hawkins shared his unique experiences and insights gleaned from a career spanning over a decade in the data center industry. This blog post captures the highlights of this video interview, spotlighting the trajectory of Compass Datacenters and the industry at large. Early Days and Industry Insights Hawkins brings a wealth of experience to the table, having transitioned from a technology-focused career into the world of data centers. One of the key takeaways from the interview was the way data centers have evolved over time. Hawkins illustrated how the industry has shifted from traditional on-premises facilities to more robust and flexible commercial data centers, designed to address the ever-growing customer needs. Strategic Land Acquisitions and Industry Trends Hawkins also delved into some of the strategic decisions that have positioned Compass Datacenters for success. Notably, the company made some unconventional but prescient land acquisitions in locations like Leesburg and Goodyear, anticipating future market needs. Additionally, by staying responsive to emerging trends such as the augmented demand for cloud services and AI, Compass Datacenters has been able to drive continuous growth. Recognizing Operational Excellence The conversation touched on important aspects of operational excellence in the data center industry. Operations teams, according to Hawkins, play a critical role in ensuring reliable and seamless data center operations. While often unheralded, their contribution cannot be overstated and deserves recognition. In conclusion, David Liggitt's interview with Raymond Hawkins offers valuable insight into the dynamic data center industry and Compass Datacenters' strategic growth tactics. At datacenterHawk, it is our mission to provide a platform for such stimulating conversations with industry leaders. We believe that collaboration and the sharing of knowledge are key to driving the industry forward.