Google to invest $1 billion in Kansas City data center

One key trend is incorporating more flexible and efficient cooling systems to accommodate higher densities and minimize environmental impact. “Data center leaders are asking engineers for designs that will accommodate higher density cabinet loads as they transition from traditional all-air cooling methods to direct-to-cabinet cooling systems in anticipation of the impact of AI,” Martin said. “As climate concerns grow, there will be continued pressure on data center companies to utilize more efficient cooling methods as a way to reduce their carbon footprint as well.”

Another significant shift in 2024 will be expanding data centers into new markets. “AI will drive the shift as data centers go in search of new locations with available power,” Martin predicted. “The challenge of meeting the power demands of the modern data center became apparent in 2023 and will only get worse in 2024 if firms don’t focus on moving to where power is available.”

Martin expects data center planners and investors to find markets like Denver, Kansas City, Nashville, and Salt Lake City attractive alternatives to power-constrained regions. “If they can’t get the power to the data center, bring the data center to the power,” she said.

Midwestern expansion

The rise of AI and the growing trend of enterprises moving to the cloud have been significant drivers of demand for data centers, said Narayana Pappu, CEO of Zendata, a San Francisco-based provider of data security and privacy compliance solutions.

“Capacity helps meet this demand and prepare for things to come without putting pressure on cost,” Pappu said, emphasizing the benefits of extra capacity in data centers.

When it comes to the best locations for data centers, Pappu noted that multiple factors come into play, including environmental risks, operational costs, and regulatory requirements. “The usual suspects from a location perspective have been northern Virginia, Silicon Valley, Singapore, and Shanghai,” he said. “However, since the pandemic, there have been more data centers breaking ground in the Midwest.”