The CIA Sure Looks Busy

The demand for generative AI applications like ChatGPT, Midjourney, and Bard is increasing, leading to a higher demand for data center networks to support the large language models used. This demand is expected to continue to rise in the coming years, requiring the construction of new data centers and the expansion of existing ones.

Currently, the highest concentration of data center power capacity is in Northern Virginia, specifically in Loudoun and Prince William counties. This area is known for its tax incentives, excellent connectivity, and infrastructure that caters to the needs of large server farms. It accounts for nearly 50% of the data centers in the United States.

Beijing ranks second in terms of data center capacity with 1,800 megawatts, followed by London with 1,000 megawatts, and Singapore with 876 megawatts. While Tokyo currently ranks fifth for capacity, it is accelerating its efforts with future projects, especially compared to other countries in the Asia-Pacific region. Japan’s data power capacity is expected to double to almost 2,000 megawatts in the next three to five years due to investments from companies like TSMC and Nvidia, who are establishing chip fabrication plants and “AI factories” across the country.

The vacancy rates of data centers in different regions are also significant factors to consider. Singapore has a vacancy rate of less than one percent, Northern Virginia has a vacancy rate of about two percent, and Tokyo has a vacancy rate of 11.2 percent in Q1 of 2023.