The data center rundown: February

28 February 2024

We’re only two months into the year and the data center industry is already buzzing with activity. From new developments to major headlines, there’s no shortage of news to keep up with. In the second instalment of our monthly series, we take a closer look at some of the biggest stories in the data center world this month.

Top data center news for February

A big month of data center investment from Microsoft

Microsoft has revealed it will invest $2.1 billion in cloud computing and artificial intelligence (AI) infrastructure in Spain over the next two years. Vice chair and president of Microsoft Brad Smith wrote on X (formerly Twitter), “I’m thrilled to announce that we will expand our AI and cloud infrastructure in Spain by $2.1bn in the next two years. Our investment is beyond just building data centers, it’s a testament to our 37-year commitment to Spain, its security, and development and digital transformation of its government, businesses, and people."

Microsoft also announced that it would invest almost $3.5 billion in Germany over the next two years to expand its data center capacities for applications in the field of artificial intelligence and cloud computing.

NTT branches into Paris Market

NTT Ltd’s Global Data Centers division is set to expand its presence in the Paris market by developing and operating its first data center campus there. The campus, which will span 14.4 hectares (35.5 acres), will feature three data centers with a total planned capacity of 84 MW of critical IT load.

Edgnex & Vodafone Turkey collaborate for $100m data center

Vodafone and Edgnex, a UAE-based data center firm, have announced their plans to form a joint venture to construct a new data center in Izmir, Turkey. The project, which is valued at $100 million, will be located on the western coast of Turkey, along the Aegean Sea. The facility is expected to be operational by the first quarter of 2025 and will be Vodafone’s second data center in Izmir and its sixth in Turkey.

Virtus to deliver new data center in Buckinghamshire

Virtus Data Centres, a UK-based data center provider, has announced plans to build a new data center campus in Buckinghamshire. The design includes four data centers with a total IT capacity of 75MW. The site has already been cleared and approved for construction, with building works scheduled to begin in Q4 2024 and the facility expected to be operational by Q2 2026.

More DC investment!

In another significant investment move within the data center industry, Starwood Capital Group has acquired an $850 million stake in Echelon Data Centers. The investment will support Echelon’s expansion plans, including the development of new data centers in Ireland and the UK. Starwood said the investment values Echelon at approximately $2.69 billion.

Yondr Group and Marubeni join forces for Japanese data centre project

Yondr Group and Marubeni Corporation have announced a partnership to collaborate on a data center project in Japan. This joint venture signals a strategic move to capitalize on the increasing demand for data infrastructure in the Japanese market. Leveraging Yondr's expertise in data center development and Marubeni's extensive experience and resources, the collaboration aims to address the evolving needs of businesses for reliable and scalable data solutions in the region. The partnership brings Yondr’s model of reliable hyperscale data centres to the Japanese market, with demand expected to reach 3+GW by 2029.

Blackstone lines up for AirTrunk

Blackstone intensified its pursuit of acquiring Asia-Pacific data center operator, AirTrunk. Reports indicate that Blackstone is in advanced discussions to secure a controlling stake in AirTrunk, valuing the company at approximately $3 billion. If successful, the acquisition could significantly bolster AirTrunk's position in the industry and pave the way for further growth opportunities in the increasingly competitive data center sector.

Google breaks ground on Norway DC

Google has started construction on its first data center in Norway, as the tech giant aims for 99% carbon-free operations. The new facility, located in Skien, will be powered by renewable energy and is part of Google’s commitment to reducing its carbon footprint. The data center is expected to create jobs and support the local economy, while also providing reliable and sustainable cloud services to customers in the region.

Nvidia data center business booms

And last, but by no means least. Nvidia revealed its data center business has seen a remarkable surge, with sales soaring over 400% since last year, reaching $18.4 billion in fourth-quarter sales. This explosive growth underscores the increasing demand for data processing and AI capabilities, solidifying NVIDIA's position as a key player in the data center market.

February was undoubtedly a busy month, with many exciting investments and projects on the horizon. In March, we’ll be back with another rundown of the latest developments in the data center industry.

Until then, read what our Founder & CEO had to say about how the construction industry can meet the growing demand for data centers driven by AI, here: https://www.xyzreality.com/resources/will-construction-meet-ai-demand-for-data-centers