Welcome to Davos in the Desert’s Data Center Technology Conference. Hear CEOs of data denter technology companies tell us about how their businesses are seizing opportunities in this enormous industry. Listen to industry experts discuss groundbreaking data center technology research. Join us virtually on March 26, 2025, and gain unparalleled insight into breaking developments in data center technology.
The data center industry is one of the fastest 
growing segments of the global economy. Data center companies generated as much as $301 billion in revenue in 2023 and some have projected that related revenues will reach $775 billion by 2034. Part of this growth is a function of colocation rents surging by as much as 37% year-over-year in recent quarters.
Meanwhile, the data center construction market is expected to grow from $61.8 billion in 2023 to $113.62 billion by 2029. Global demand for data center capacity could rise at an annual rate between 19% and 22%.
This tremendous growth is being driven by AI and machine learning, cloud computing, IoT and 5G, increased digitization and big data and analytics.
Data centers are blossoming across the globe. The following are among the factors considered when deciding where to place new data centers:
Connectivity and Infrastructure
- Proximity to fiber networks and internet exchange points
- Availability of redundant connections for high reliability
- Access to multiple internet service providers
- Quality of telecommunications infrastructure
Geographic and Environmental Factors
- Risk assessment for natural disasters (earthquakes, floods, hurricanes)
- Climate conditions affecting cooling costs and efficiency
- Cooler environments to reduce power consumption for cooling
- Geological stability of the area
Land and Expansion Potential
- Abundance of available land for current needs and future expansion
- Especially important for hyperscale data centers
- Potential for hundreds of acres to accommodate growth
Market Demand and Proximity
- Closeness to major markets and customers
- Demand from cloud service providers and AI companies
- Clustering effect in established data center hubs
- Emerging markets in Latin America, Europe, and Asia-Pacific
Regulatory Environment
- Tax incentives and subsidies offered by states or countries
- Zoning regulations and sustainability requirements
- Data privacy laws and compliance considerations
Transportation and Accessibility
- Proximity to adequate roads and airports for hardware shipping
- Accessibility for employees and visiting personnel
- Availability of nearby hotels and amenities
The following are among the technologies that are rendering data centers more efficient:
Artificial Intelligence and Machine Learning: These algorithms automate tasks such as remote monitoring and maintenance alerts while improving resource management and service delivery.
Advanced Cooling Solutions: Advanced Cooling Solutions entail liquid cooling technologies, direct-to-chip cooling solutions and adaptive cooling systems that use AI to minimize energy waste in real-time.
Edge Computing: Edge Computing enables processing data closer to the source (thereby, achieving reduced latency), supporting IoT and 5G networks and enabling faster data processing.
Hyperscale and Software-Defined Data Centers (SDDCs): Hyperscale data centers offering enhanced scalability and efficiency while SDDCs use virtualization technologies to recreate computing and storage in software form.
Power Infrastructure Innovations: Power Infrastructure Innovations include transitioning to 48-volt power supply units for servers as well as implementing larger power distribution units and switchgear to handle higher power densities.
Sustainability Initiatives: Sustainability initiatives include designing green data centers and investing in renewable resources and emissions reduction methods.
One challenge that the data center industry is facing is the voracious appetite for data center services. The industry is straining to meet demand.
- Overall data center vacancy rates for primary markets hit a record low of 2.8% in the first half of 2024, down from 3.3% the previous year. In Northern Virginia, the world’s largest data center market, vacancy rates dropped to an astonishing 0.9% in Q1 2024, despite an 18% increase in inventory.
- As of late 2023, a record 3,077 MW of data center capacity was under construction in primary markets, representing a 46% year-over-year increase. However, nearly 80% of the more than 3.87 GW under construction in primary markets is already preleased.
- Even if all currently known expansion plans are delivered on time, there could still be a data center supply deficit of more than 15 GW in the United States alone by 2030.
- Other challenges confronting the data center industry include managing heat generated by servers running continuously and reducing the related carbon footprint. Electric production is struggling to meet the demands of data centers: Some energy companies have informed data centers that electricity for new facilities won’t be available for years. Further, data center operators must protect their entrusted data from cybersecurity threats and adhere to stringent data privacy regulations.
A ton of money is flowing into the data center industry. Total data center-oriented M&A deals in 2024 were poised to pass the $40 billion milestone. Some of the data center companies that recently received infusions of capital include:
- Vantage Data Centers secured a $6.4 billion equity investment led by DigitalBridge and Silver Lake in January 2024
- Crusoe Energy Systems raised $600 million in a funding round led by Founders Fund in December 2024. This round valued the company at $2.8 billion and included investments from Nvidia and Fidelity.
- Neeve raised $15 million in venture funding led by Cantor Fitzgerald and RXR Realty in October 2024.
- DC BLOX received development capital from Post Road Group, Bain Capital Credit, and other investors.
Below are some of the recent and anticipated data center technology IPOs:
- DigiCo Infrastructure REIT completed a A$2 billion ($1.3 billion) IPO in December 2024.
- Switch is said to be exploring a potential IPO that could value the company at about $40 billion.
- CoreWeave is expected to file for an IPO in December 2024 and anticipates annual revenue growth of around 300% to $8 billion in 2025. CoreWeave recently secured a $10 billion deal with Microsoft.
- Cerebras may seek a valuation above $4 billion in an IPO.
- Dataminr, a data intelligence company, is on track for $200 million in revenue.
- Confidentially filed for an IPO that could result in a valuation of up to $6 billion.
The presenting management teams will discuss how their companies are penetrating the vast data center industry. They will apprise listeners of their unique product offerings, key selling points and their targeted customer segments. They will inform us of their research and development efforts, proprietary technologies and patent portfolios. They will tell us about their business models including the extent of their collaborations, licensing strategies, distribution channels, expansion efforts, customer acquisition strategies, manufacturing strategies, milestones and exit strategies.