Lesson 6 - Data centers Flashcards
what are data centers
physical facilities that house large amounts of data for storing, processing and distributing data
what’s the largest data center in the world today
china-telecom inner mongolia
how many servers in data centres does microsoft have
more than 4 million
why are data centers important
crucial for storing and managing the vast amount of data that organization depend on for their daily operations - they support; data storage + management, applications, security, without a data centre it’s almost impossible for large organizations to effectively run their businesses
what’s the range of growth in 2024 for data centers
15-24.4% (largest in NA, lowest in SA)
what are the challenges in data centers
vacancy rates are decreasing, there’s an increase in demand with a decrease in supply.
has power supply shortage, government limitation are slowing down construction timelines doe new data centres
what’s the environmental impact of data centres
limited availability of clean energy forces companies to use coal energy as 1 chatgpt search uses 10x more electricity than a google search
why are PE firms investing into data centers + its investment risks
high demand for space, 7.5 yrs average lease terms, great future market growth.
investment risks: outdated technology - many data centers can’t support IA’s power + cooling needs, retrofitting older centers is costly/impossible, stranded assets - older facilities may struggle to keep tenants w/financial losses + decommissioning of obsolete centers, valuations concerns - uncertainty of future value, high AI driven valuations may not hold up
what’s the impact of data centers on the finance sector
used in transactions, cloud storage + AI implicationswhat
what are the projections of data centers
10% compounding yearly growth until 2030. hundred of billions of dollars are being invested. data center capacity if expected to double over the next 5 years. 20% of space in data centers are being occupied by AI
why and how are data centers going green
to minimize environmental impact while maintaining efficiency, reduce carbon footprint, reduce operating expenses, enhance brand reputation
who’s a leader in the data centers + ESG performance + why
Switch designs, builds, and owns data centers, and rents out their space to several companies, they are an industry leader in ESG performance
100% uptime due to unique patented tech, runs on 100% renewable energy since 2016, replenishes 2x their annual water consumption
