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Released December 04, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. manufacturing activity was unchanged in November, according to a survey report by the Institute for Supply Management (ISM), as demand continued to show contraction. Still, Industrial Info is tracking about $67 million worth of U.S. Industrial Manufacturing Industry projects that are planned to kick off in the first quarter of 2024--about 33% of which is attributed to data center projects.
The ISM's November Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S., registered 46.7%--down from 49% in September and 47.6% in August.
November marks the 13th consecutive month of contraction. Any reading under 50% indicates contraction in the manufacturing economy.
"Demand remains soft, and production execution is slightly down compared to October as panelists' companies continue to manage outputs, material inputs and--more aggressively--labor costs," Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said.
The New Orders Index contracted at a slower rate than October, Fiore noted, while the New Export Orders Index contracted further, and the Backlog of Orders Index remained in contraction territory.
Despite any negative sentiment, Industrial Info is tracking roughly $67 billion worth of U.S. Industrial Manufacturing projects that are set to kick off in the fourth quarter, including about $22 billion attributed to data center projects. Subscribers to Industrial Info's Global Market Intelligence GMI Industrial Manufacturing Project Database can click here for a full list of project reports.
One of the highest-valued projects is Nippon Telegraph And Telephone Corporation's (NTT) (Tokyo, Japan) $1 billion Phase 4 data center expansion in Mesa, Arizona, which is part of a seven-phase, $7 billion effort to build a 1.5-million-square-foot campus. The Phase 4 project, which is expected to wrap up by the end of 2024, entails constructing a two-story building between 165,000 and 229,000 square feet to provide data colocation services for the city of Mesa.
NTT also expects its $160 million Phase 3 expansion of its data center Garland, Texas, near Dallas, will kick off this upcoming quarter. This final phase will add 229,500 square feet to the 1.5-million-square-foot campus, to expand regional colocation services. The project is expected to wrap up in 2025. Subscribers can read detailed information on the Arizona and Texas projects.
But three U.S.-based tech giants account for about $6 billion in activity: Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington).
Amazon's activity includes the construction of two new areas at its data center complex in New Albany, Ohio, with a total investment value of $1.2 billion. The North Beech West project entails constructing 18 data center buildings (more than 410,000 square feet each), among other work, and the North Beech East project involves 11 new buildings with the same size, to expand data center services in the region. Both projects are expected to wrap up by the end of 2025. Subscribers can read more information on the North Beech West and East projects.
Among Meta's first-quarter project starts is a $150 million grassroot data center in Sandston, Virginia, near Richmond. The project involves constructing two buildings totaling 675,000 square feet, both of which would have an adjacent mechanical yard. Click here for the project report.
Microsoft expects five projects will kick off in Virginia, including construction of a new data center at its campus in Clarksville. The $200 million project entails adding three buildings totaling about 430,000 square feet, plus installing supporting equipment and systems, to expand the company's Virginia Regional Network Group that has outgrown capacity faster than anticipated. Click here for more information.
Meanwhile, nearly $9 billion of the more than $60 billion in first-quarter manufacturing kickoffs is attributed to electric vehicle (EV)-related projects--although major U.S. automakers plan to reduce related capital expenditures, citing slower sales than expected. For more information, see November 13, 2023, article - Automakers Slow EV Spending as Demand Lags Projections.
Subscribers to the GMI Project and Plant databases can click here for a look at all of the project reports discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The ISM's November Purchasing Managers Index (PMI), which tracks 18 industry sectors in the U.S., registered 46.7%--down from 49% in September and 47.6% in August.
November marks the 13th consecutive month of contraction. Any reading under 50% indicates contraction in the manufacturing economy.
"Demand remains soft, and production execution is slightly down compared to October as panelists' companies continue to manage outputs, material inputs and--more aggressively--labor costs," Timothy Fiore, chair of the ISM's Manufacturing Business Survey Committee, said.
The New Orders Index contracted at a slower rate than October, Fiore noted, while the New Export Orders Index contracted further, and the Backlog of Orders Index remained in contraction territory.
Despite any negative sentiment, Industrial Info is tracking roughly $67 billion worth of U.S. Industrial Manufacturing projects that are set to kick off in the fourth quarter, including about $22 billion attributed to data center projects. Subscribers to Industrial Info's Global Market Intelligence GMI Industrial Manufacturing Project Database can click here for a full list of project reports.
One of the highest-valued projects is Nippon Telegraph And Telephone Corporation's (NTT) (Tokyo, Japan) $1 billion Phase 4 data center expansion in Mesa, Arizona, which is part of a seven-phase, $7 billion effort to build a 1.5-million-square-foot campus. The Phase 4 project, which is expected to wrap up by the end of 2024, entails constructing a two-story building between 165,000 and 229,000 square feet to provide data colocation services for the city of Mesa.
NTT also expects its $160 million Phase 3 expansion of its data center Garland, Texas, near Dallas, will kick off this upcoming quarter. This final phase will add 229,500 square feet to the 1.5-million-square-foot campus, to expand regional colocation services. The project is expected to wrap up in 2025. Subscribers can read detailed information on the Arizona and Texas projects.
But three U.S.-based tech giants account for about $6 billion in activity: Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), Facebook parent Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington).
Amazon's activity includes the construction of two new areas at its data center complex in New Albany, Ohio, with a total investment value of $1.2 billion. The North Beech West project entails constructing 18 data center buildings (more than 410,000 square feet each), among other work, and the North Beech East project involves 11 new buildings with the same size, to expand data center services in the region. Both projects are expected to wrap up by the end of 2025. Subscribers can read more information on the North Beech West and East projects.
Among Meta's first-quarter project starts is a $150 million grassroot data center in Sandston, Virginia, near Richmond. The project involves constructing two buildings totaling 675,000 square feet, both of which would have an adjacent mechanical yard. Click here for the project report.
Microsoft expects five projects will kick off in Virginia, including construction of a new data center at its campus in Clarksville. The $200 million project entails adding three buildings totaling about 430,000 square feet, plus installing supporting equipment and systems, to expand the company's Virginia Regional Network Group that has outgrown capacity faster than anticipated. Click here for more information.
Meanwhile, nearly $9 billion of the more than $60 billion in first-quarter manufacturing kickoffs is attributed to electric vehicle (EV)-related projects--although major U.S. automakers plan to reduce related capital expenditures, citing slower sales than expected. For more information, see November 13, 2023, article - Automakers Slow EV Spending as Demand Lags Projections.
Subscribers to the GMI Project and Plant databases can click here for a look at all of the project reports discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
