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Released March 10, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The ever-flourishing field of artificial intelligence (AI), particularly its role in social media platforms, is driving much of the demand for data centers in tech hotspots across the U.S., including areas near Austin, Texas, and Portland, Oregon. The constant need for buildouts is forcing companies such as Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) and Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) to find more efficient ways to use their physical space. Industrial Info is tracking more than $14 billion worth of active data-center projects that are set to begin construction in the second quarter, about $13 billion of which has a medium-to-high (70% or greater) chance of kicking off as scheduled.
Click on the image at right for a graph detailing the top 10 parent companies for U.S. data center projects set to begin construction from April through June.
Microsoft is expanding its largest data center, Project Osmium in West Des Moines, Iowa, with its DSM 12 building, which will add 250,000 square feet of business space to the 1.7 million-square-foot campus. Microsoft also is preparing to expand its data center in Elk Grove, Illinois, doubling the 130,000 square feet from the first phase, which began in early 2021 and is nearing completion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed reports on the DSM 12 project and Phase I and Phase II of Elk Grove.
"Our data center investments continue to be based on near-term and longer-term customer demand, including AI opportunities," said Amy Hood, the chief financial officer of Microsoft, in a recent earnings-related conference call. Chief Executive Officer Satya Nadella added: "As customers select their cloud providers and invest in new workloads, we are well-positioned to capture that opportunity as a leader in AI. We have the most powerful AI supercomputing infrastructure in the cloud."
Along with the Osmium and Elk Grove projects, Microsoft is preparing to begin construction on its SAT15 Data Center in San Antonio, Texas, to fulfill growing customer demand for cloud services. The first two phases of construction, both expected to kick off in the second quarter, are expected to create more than 290,000 square feet of business space. Subscribers can read detailed project reports on Phase I and Phase II of SAT15.
Texas also is a top destination for Apple Incorporated (NASDAQ:AAPL) (Cupertino, California), which is expanding its campus in Austin, Texas, which already has seen a series of additions in the past few years. The 368,726-square-foot Capstone AC03 and the 298,977-square-foot Capstone AC08 are expected to kick off in the spring and take about two years to complete. Subscribers can read detailed project reports on AC03 and AC08.
Meta, the parent company of Facebook, is preparing to begin construction on a new data center in Hillsboro, Oregon, as part of the company's $1 billion worth of planned investment in the area. Facebook and its social media peers have turned Hillsboro into one of the busiest spots in the U.S. for data center activity: According to a recent report from CBRE Group Incorporated (NYSE:CBRE) (Dallas, Texas), the Hillsboro area ranked fourth in the U.S. and first among secondary markets for data center leasing in the first half of 2022. Subscribers can learn more from Industrial Info's project report.
"We expect [overall] capital expenditures [for 2023] to be in the range of $30 billion to $33 billion, lowered from our prior estimate of $34 billion to $37 billion," said Susan Li, the chief financial officer of Meta, in a recent earnings-related conference call. "The reduced outlook reflects our updated plans for lower data center construction spending in 2023, as we shift to a new data center architecture that is more cost-efficient and can support both AI and non-AI workloads."
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active data-center projects that are set to begin construction across the U.S. in the second quarter.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 parent companies for U.S. data center projects set to begin construction from April through June.Microsoft is expanding its largest data center, Project Osmium in West Des Moines, Iowa, with its DSM 12 building, which will add 250,000 square feet of business space to the 1.7 million-square-foot campus. Microsoft also is preparing to expand its data center in Elk Grove, Illinois, doubling the 130,000 square feet from the first phase, which began in early 2021 and is nearing completion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed reports on the DSM 12 project and Phase I and Phase II of Elk Grove.
"Our data center investments continue to be based on near-term and longer-term customer demand, including AI opportunities," said Amy Hood, the chief financial officer of Microsoft, in a recent earnings-related conference call. Chief Executive Officer Satya Nadella added: "As customers select their cloud providers and invest in new workloads, we are well-positioned to capture that opportunity as a leader in AI. We have the most powerful AI supercomputing infrastructure in the cloud."
Along with the Osmium and Elk Grove projects, Microsoft is preparing to begin construction on its SAT15 Data Center in San Antonio, Texas, to fulfill growing customer demand for cloud services. The first two phases of construction, both expected to kick off in the second quarter, are expected to create more than 290,000 square feet of business space. Subscribers can read detailed project reports on Phase I and Phase II of SAT15.
Texas also is a top destination for Apple Incorporated (NASDAQ:AAPL) (Cupertino, California), which is expanding its campus in Austin, Texas, which already has seen a series of additions in the past few years. The 368,726-square-foot Capstone AC03 and the 298,977-square-foot Capstone AC08 are expected to kick off in the spring and take about two years to complete. Subscribers can read detailed project reports on AC03 and AC08.
Meta, the parent company of Facebook, is preparing to begin construction on a new data center in Hillsboro, Oregon, as part of the company's $1 billion worth of planned investment in the area. Facebook and its social media peers have turned Hillsboro into one of the busiest spots in the U.S. for data center activity: According to a recent report from CBRE Group Incorporated (NYSE:CBRE) (Dallas, Texas), the Hillsboro area ranked fourth in the U.S. and first among secondary markets for data center leasing in the first half of 2022. Subscribers can learn more from Industrial Info's project report.
"We expect [overall] capital expenditures [for 2023] to be in the range of $30 billion to $33 billion, lowered from our prior estimate of $34 billion to $37 billion," said Susan Li, the chief financial officer of Meta, in a recent earnings-related conference call. "The reduced outlook reflects our updated plans for lower data center construction spending in 2023, as we shift to a new data center architecture that is more cost-efficient and can support both AI and non-AI workloads."
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active data-center projects that are set to begin construction across the U.S. in the second quarter.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
