Market Trends of Chicago Data Center Industry
Growing Cloud Applications, AI, and Big Data
- The growing adoption of cloud applications, artificial intelligence (AI), and big data is driving the demand for data centers. As more businesses and organizations shift their operations to the cloud, they require larger and more advanced data centers to support their needs.
- For instance, in December 2022, a new Oracle Cloud Infrastructure (OCI) region officially began operations in Chicago, according to Oracle. The new area, which is Oracle's fourth in the United States and 41st overall, is a public cloud region. The business also runs two general US Government regions, three Department of Defense-specific US Government regions, several US National Security regions, a TikTok plant in Texas, and regions in Ashburn, Virginia, Phoenix, Arizona, and San Jose, California.
- AI and big data also require significant data storage and processing power. AI algorithms require vast amounts of data to be processed quickly, and big data analytics require massive amounts of storage and processing power to handle large datasets. This has increased demand for data centers with advanced computing capabilities, such as graphics processing units (GPUs) and artificial intelligence accelerators.
- Furthermore, the increasing need for data privacy and security drives the demand for data centers. With the rise in cyber threats and data breaches, businesses and organizations are seeking secure and reliable data storage and processing solutions, which advanced data centers can only provide.
- The growth of cloud applications, AI, and big data drives the demand for advanced data centers. As businesses and organizations increasingly rely on these technologies to support their operations, the demand for data centers is expected to continue to grow. This presents a significant opportunity for businesses and investors looking to enter the data center market.
Understand The Key Trends Shaping This Market
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High Adoption Of Hyperscale Data Center
- The rising adoption of hyperscale data centers is a significant driver of the data center market. Hyperscale data centers are large-scale facilities designed to support the massive amounts of data processing and storage required by modern businesses and organizations.
- For instance, in June 2022, the Aspen Mountain Hyperscale Data Center complex, the world's first sustainable hyperscale data center development, will be a carbon-negative, multi-business environment thanks to 100% heat reuse, according to Wyoming Hyperscale White Box. The 100% liquid-cooled, technology-neutral information technology equipment (ITE) will be used across the 120 MW master-planned campus, which will also run entirely on renewable energy and require no refrigerant or industrial water. The project's 30-MW initial phase is currently being built, and commissioning is scheduled to start in 2023.
- In Chicago, Illinois, commercial real estate investment company Metro Edge Development Partners is preparing to build a new data center. The business disclosed that it had signed a ground lease with a 75-year term for a 1.97-acre site in the Illinois Medical District (IMD), which gives it the only right to develop and run a high-performance data center. Approximately 191,000 square feet (17,750 square meters) in size, a 21MW, five-story data center is the subject of planning and permitting efforts by Metro Edge.
- January 2022, Aligned's latest hyperscale data center campus, a leading data center provider offering innovative, sustainable, and adaptable colocation and build-to-scale solutions for cloud, enterprise, and managed service providers, has begun construction in Chicago, Illinois. The 18.5-acre campus's first data center, ORD-01, is a 520,000-square-foot, 48-MW building that may be expanded to about 60 MW. When finished, the Chicago campus of Aligned will have a capacity of more than 100 MW.
