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Higher Demand for Cloud Coverage Increases Construction of U.S. Data Centers

The growing demand for cloud computing and online storage has led to an increase in capital investments for many tech giants as they expand or build new data centers throughout the U.S.

Released Wednesday, March 02, 2016

Higher Demand for Cloud Coverage Increases Construction of U.S. Data Centers

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Researched by Industrial Info Resources (Sugar Land, Texas)--The growing demand for cloud computing and online storage has led to an increase in capital investments for many tech giants as they expand or build new data centers throughout the U.S. Industrial Info is currently tracking 29 U.S. data center projects totaling over $6 billion.

Last summer, Google Incorporated (Mountain View, California) announced it would spend $600 million to build a data center on the site of the shuttered TVA (Tennessee Valley Authority) Widows Creek Fossil power plant in Stevenson, Alabama. It will be the company's first data center in Alabama and the first time Google has converted a power plant. Google chose the site for its existing infrastructure with hopes of reusing the transmission lines to bring in 100% renewable energy to power the facility. TVA will serve as a direct utility provider for this project.

Google also announced late last year plans to construct another $600 million data center in Clarksville, Tennessee on the site of the former Hemlock Semiconductor plant in Montgomery County. It will be Google's eighth in the U.S. and its 15th in the world. Google is a subsidiary of recently formed Alphabet Incorporated (NASDAQ:GOOGL) based in Mountain View, California.

Facebook (NASDAQ: FB) (Menlo Park, California) has planned expansion projects at all of its U.S. locations throughout 2016. In Prineville, Oregon, Facebook already has two full-sized data center buildings and is now constructing its third. The company also has started construction on buildings at both its Altoona, Iowa and Forest City, North Carolina campuses. In addition, the firm is in the process of building a data center campus in Fort Worth, Texas. Phase I should be completed before the close of this year with at least two more phases to follow.

In Nevada, Switch SuperNAP (Las Vegas) is in the process of expanding its Las Vegas and Reno/McCarran colocation data center sites. In Las Vegas, Switch plans to offer over 2,365,000 square feet at full build-out. Having completed SuperNAP facilities 1-9, the company is preparing to build three more data center buildings. Switch's largest expansion is slated for the Tahoe Reno Industrial Park in Reno. The company broke ground last year on a 1.2 million-square-foot data center where eBay Incorporated (NASDAQ: EBAY) (San Jose, California) will serve as the anchor tenant. The Tahoe Reno Industrial Campus will have seven data center facilities and total over 6,400,000 square feet upon completion.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
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