In today’s rapidly evolving digital landscape, the demand for data centers is skyrocketing. Several factors are driving this surge, including the rapid advancement and widespread adoption of artificial intelligence (AI), increased cloud service usage, and the rise of edge computing. However, building new data centers from scratch is often cost-prohibitive and time-consuming. As a result, many organizations are turning to adaptive reuse, transforming existing facilities into efficient and modern data centers. But what types of buildings are best suited for this transformation? Let’s explore.

Why the Use of Data Centers is Skyrocketing

Artificial Intelligence (AI) Boom: The rapid growth of AI applications is one of the primary drivers of increased data center demand. AI technologies require substantial computational power and storage capabilities, leading to a significant uptick in data center utilization. As AI applications, such as machine learning and natural language processing, become more prevalent, they necessitate advanced data center infrastructure to handle the increased workload​.

Cloud Services Expansion: Major cloud service providers, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, are continuously expanding their data center capabilities to support AI workloads. These hyperscale data centers are designed to handle large-scale operations, which is critical for the storage and processing needs of AI applications.

Energy Consumption: Power demand from generative AI is projected to increase dramatically, with estimates suggesting that AI could account for 3% to 4% of global power demand by 2030. This surge in energy consumption is prompting data center operators to invest heavily in new infrastructure and sustainable energy solutions to meet these demands.

Best Types of Existing Facilities for Data Centers

  1. Warehouses

Empty Warehouse

  • Advantages: Warehouses offer large, open floor plans, providing ample space for data center equipment. They are usually located in industrial areas with strong foundations and robust structures.
  • Considerations: Retrofitting warehouses with efficient cooling systems and ensuring a reliable power supply are essential.
  1. Office Buildings

office building

  • Advantages: Office buildings are often located in urban areas, providing low-latency connectivity to businesses. They already have some level of IT infrastructure and built-in amenities such as parking and security.
  • Considerations: Some office buildings may require structural modifications and enhanced cooling and ventilation systems.
  1. Industrial Facilities

Industrial Facility

  • Advantages: Industrial facilities are equipped with high-capacity power supplies and flexible layouts. They are typically located in zones permissive of data center operations.
  • Considerations: Environmental remediation and significant infrastructure upgrades may be necessary.
  1. Retail Spaces

Retail Space

  • Advantages: Retail spaces are located in accessible areas with good utility connections. They offer significant floor space that can be reconfigured for data center use.
  • Considerations: Structural reinforcements and navigating zoning laws may be required.
  1. Educational Institutions

Educational institutions

  • Advantages: Educational institutions have substantial IT infrastructure, ample space, and robust power and connectivity resources.
  • Considerations: Converting part of an educational facility may disrupt ongoing activities, and alignment with the institution’s mission and community goals is essential.

Conclusion

Transforming existing facilities into data centers offers a sustainable and cost-effective solution to meet the growing demand for data storage and processing power. By carefully evaluating the specific needs of a data center and the characteristics of available buildings, organizations can successfully adapt existing structures to support modern digital infrastructure. This approach not only conserves resources but also significantly reduces the time and cost associated with building new data centers. Reach out to us at Cadence to discuss this further.