Hyperscale Data Centres: Scale, Speed & Strategy

Bain Capital and Aquila to build sustainable data centre platform

Bain Capital, a private, multi-asset alternative investment firm, and Aquila Group, a private investment company and pioneer in sustainable assets, have announced a significant partnership in the data centre sector. As part of the cooperation, Bain Capital is acquiring an 80% stake in AQ Compute, the data centre subsidiary of Aquila Group. This strategic alliance, with a targeted multi-billion Euro investment volume, is aimed at significantly accelerating AQ Compute’s plans to develop and operate sustainable data centres for hyperscale and AI customers across Europe. Founded by Aquila Group in 2020, AQ Compute provides modular and AI-ready data centre and colocation services, primarily powered by clean energy. With significant investment, the company launched its first sustainable data centre near Oslo in 2024, with additional projects underway in Barcelona, Milan and beyond. Bain Capital supports this growth through its capital investment and global expertise in the data centre industry, including its successful development of Bridge Data Centres in Asia. Together, the partners aim to build a leading European data centre platform, utilising clean energy wherever feasible. Ali Haroon, a Partner at Bain Capital, says, “The European data centre sector presents an attractive market opportunity, driven by robust cloud demand, a need for high-performance computing and AI deployments, and data sovereignty across the region. Through this partnership with Aquila Group, we bring a differentiated, renewable energy angle to tackle the ever-growing power challenges in this critical part of Europe’s infrastructure.” Rafael Coste Campos, a Managing Director at Bain Capital, adds, “We are thrilled to bring our deep European real estate sector expertise and our multi-layered experience growing companies with complex infrastructure services, tenant relationships and talent attraction to AQ Compute. Leveraging our global data centre expertise, we are well-positioned to meet the needs of this ever growing and critically important sector and to build a market leading data centre operation in Europe.” Michael Huber, a Principal at Bain Capital, notes, “Having invested more than $1 billion in real estate over the past three years, Bain Capital’s first European investment in data centres means we now have a truly global platform. This investment will benefit from and complement our experience investing in and building one of the largest data centres in Asia – Chindata and backing DC BLOX in the US.” Roman Rosslenbroich, Co-Founder and CEO of Aquila Group, comments, “Through our partnership with Bain Capital, we are well positioned to expand AQ Compute’s capabilities and solidify its role as a key player in Europe’s digital infrastructure. The rapid growth in data demands presents both a challenge and an opportunity - while more data centres are essential, they must be sustainable. Aquila will invest several hundred-million Euros alongside Bain Capital’s larger commitment, with Aquila Capital providing co-investments. With our continued 20% stake, we will ensure AQ Compute’s growth aligns with our long-term vision for sustainable infrastructure, leveraging synergies with Aquila Clean Energy, a major developer and independent power producer in the clean energy space.“ Markus Holzer, Chairman of AQ Compute, concludes, “At AQ Compute, we are uniquely positioned to meet the growing demand for data processing by combining innovative, AI-ready infrastructure with a commitment to sustainability. This partnership with Bain Capital not only accelerates our development pipeline but also allows us to set new standards in sustainable data centre operations across Europe.” For more from Bain Capital, click here.

Black Box commits to expanding data centre practice

Black Box has provided an update on the progress of its Western Region Training Facility in Chandler, Arizona, which has become a state-of-the-art Hyperscale Data Centre of Excellence catering to both hyperscale and enterprise data centres. Completed in late 2022, the Chandler facility now mirrors the capabilities of the company’s renowned centre in Inver Grove Heights, Minnesota, which has proven instrumental in upskilling current employees, attracting new talent and implementing comprehensive training programmes. It joins a growing network of Black Box’s Centre of Excellence offices, and further reinforces the company's commitment to advancing data centre mobilisation, pre-con services and construction. The data centre industry is experiencing rapid growth as the backbone of the digital economy, driven by increasing demands for cloud computing, AI and data storage. Black Box says that this is why it is committed to expanding its data centre practice, investing in leadership and Centres of Excellence to provide cutting-edge solutions and expertise for this critical and evolving market. As a part of this, Black Box has also announced the appointment of Matt Easton to Vice President of Data Centre Solutions. Matt comments, “Our new Hyperscale Data Centre of Excellence, along with our participation in the 7x24 Exchange Summit, focuses on developing the talent and infrastructure needed to meet the growing demands. By combining cutting-edge facilities with strategic workforce development, we ensure that Black Box remains at the forefront of hyperscale and enterprise solutions, ready to support our clients’ evolving needs in this rapidly expanding sector.” Before joining Black Box, Matt served as the Vice President of Operations at E2 Optics, where he led teams in project controls, estimation, talent acquisition, DAS/wireless and large-scale telecommunications construction. For more from Black Box, click here.

Data centre capacity constraints pushing demand to new locations

AI use is set to require the doubling of hyperscale data centre capacity in the next four years, but while the depth of demand will mean centres will be required in markets around the world, energy infrastructure and grid capacity will mean delivery will be easiest in northern European locations such as Malmo, Gothenburg, Stockholm and Oslo, says Savills. The international real estate advisor has benchmarked 68 locations around the world to assess the impact of energy constraints in different global markets, given that power capacity tends to be the major limiting factor in data centre development. With major cities often seeing high demand from competing power needs, it is often smaller cities that will find data centre delivery easiest, especially those which have plentiful renewable energy sources; but “data localisation requirements and an ongoing need for some services to be located close to key markets will continue to drive development even in the most energy-constrained hubs”, comments Paul Tostevin, Head of Savills World Research. He continues, “However, locations where limitations are fewer and time to market is faster are likely to benefit from the current unstoppable need for more capacity, especially as a cloud-based services such as AI have made site-selection more location-agnostic. We’re seeing some trends in the fastest growing markets being close to those which have limited capacity, such as Malaysia, which is boosted by its role in supporting demand from constrained neighbouring Singapore; a pattern which is beginning to emerge elsewhere in southeast Asia.” In the US, access to power and limits on grid capacity has become the major constraint on new data centre development. Rick Drescher, Corporate Managing Director and Lead of Savills Critical Facilities in the US, says, “The rulebook of data centre site selection has been ripped up; it now all comes down to where sufficient power can be accessed. In the US, the biggest markets are Northern Virginia, Chicago, and Dallas, but we’re now seeing significant growth in locations such as San Antonio-Austin, and that’s because power restrictions there are less of a factor.” Scott Newcombe, EMEA Head of Data Centres, adds, “AI is significantly transforming European data centre markets by driving increased demand for processing power and storage capacity. As organisations adopt AI technologies, they require advanced infrastructures to handle vast amounts of data. This surge leads to the expansion of existing data centres and the construction of new ones, fostering innovations in energy efficiency and cooling systems. “Moreover, with stricter regulations on data protection and sustainability, data centre operators in Europe are investing in green technologies to meet compliance requirements and consumer expectations. Overall, AI is shaping a more robust, efficient, and environmentally conscious data centre landscape across EMEA.” For more from Savills, click here.

Planning consent secured for £750m hyperscale data centre

Legal & General, specialist digital infrastructure investment firm Goldacre, and data centre development partner sineQN, have announced that planning has been approved for a £750m sustainable, urban hyperscale data centre investment located in the London Borough of Newham. The development is expected to contribute £88 million to Newham’s GVA (gross value added), creating over 1,000 skilled jobs during the construction and operation phases, and is targeted to attract 500 high-growth data businesses to the Borough. The consortium brings together their digital infrastructure experience and expertise to this new and independent project. The data centre represents a significant investment and contribution to further regeneration in Newham, where L&G has already provided over £550 million to the development of high quality and multi-sectoral regeneration projects, delivering housing and public realm as well as economic benefits such as job creation. Driven by increased demand from the digitalisation of society, including cloud migration and AI, growth in data storage and processing continues to accelerate. This partnership supports the growth in data capacity in Europe’s largest and tightest market, whilst aiming to deliver critical infrastructure that is both commercially attractive and addresses social and environmental needs. The proposed development will deliver 80 megawatts of IT power by early 2027, and has the flexibility to deliver all workloads, including AI, in a secure, sustainable location just over 500m from the London Internet Exchange (LINX). The data centre has the potential to be a heat source for thousands of homes in Newham and will aim to help the Council fulfil its net zero ambitions. The scheme will also provide significant environmental and public realm improvements along Bidder Street and connecting walkways along the Lower Lea Valley, from Canning Town to Stratford. Matteo Colombo, Managing Director of Digital Infrastructure, Asset Management, Legal & General says, “This data centre signals our continued support for the Borough through the provision of catalytic capital to develop vital assets and boost productivity in this vibrant part of London.” David Bloom, Founder & CEO, Goldacre says, “The planning approval marks a significant milestone, not only for Newham but for London’s broader digital infrastructure. As demand for data capacity continues to grow exponentially, this development reinforces the capital’s position as a global hub for innovation and technology. At Goldacre, we are committed to advancing the future of digital infrastructure, and this project exemplifies our dedication to innovative and forward-thinking solutions that meet the evolving needs of the digital economy. It has been over a decade since we invested in our first data centre, and we have gone on to make a number of successful investments in this space, with Newham as the latest addition. Both the sector and the processes involved have experienced a coming of age, there could not be a better time to invest in data centres."

New 1MW Coolant Distribution Unit launched

Airedale by Modine, a critical cooling specialist, has announced the launch of a coolant distribution unit (CDU), in response to increasing demand for high performance, high efficiency liquid and hybrid (air and liquid) cooling solutions in the global data centre industry. The Airedale by Modine CDU will be manufactured in the US and Europe and is suitable for both colocation and hyperscale data centre providers who are seeking to manage higher-density IT heat loads. The increasing data processing power of next-generation central processing units (CPUs) and graphics processing units (GPUs), developed to support complex IT applications like AI, result in higher heat loads that are most efficiently served by liquid cooling solutions. The CDU is the key component of any liquid cooling system, isolating facility water systems from the IT equipment and precisely distributing coolant fluid to where it is needed in the server / rack. Delivering up to 1MW of cooling capacity based on ASHRAE W2 or W3 facility water temperatures, Airedale’s CDU offers the same quality and high energy efficiency associated with other Airedale by Modine cooling solutions. Developed with complete, intelligent cooling systems in mind, the CDU’s integrated controls communicates with the site building management system (BMS) and system controls, for optimal performance and reliability. The ability to network up to eight CDUs makes it a flexible and scalable solution, responsive to a wide range of high-density loads. Manufactured with the highest quality materials and components, with N+1 pump redundancy, the Airedale CDU is engineered to perform in the uptime-dependent world of the hyperscale and colocation global data centre markets. Richard Burcher, Liquid Cooling Product Manager at Airedale by Modine, says, “Our investment in the liquid cooling market strengthens Airedale by Modine’s position in the data centre industry. We are seeing an increasing amount of enquiries for liquid cooling solutions, as providers move to a hybrid cooling approach to manage low to mid-density and high-density heat loads in the same space. “Airedale by Modine is a complete system provider, encompassing air and liquid cooling, as well as control throughout the thermal chain, supported with in-territory aftersales. This expertise in all areas of data centre cooling affords our clients complete life-cycle assurance.” For more from Airedale, click here.

Vantage breaks ground on Cyberjaya campus

Vantage Data Centers, a global provider of hyperscale data centre campuses, has broken ground on its second Cyberjaya campus (KUL2) in Malaysia. Set on 35 acres of land adjacent to Vantage’s existing campus (KUL1), KUL2 will deliver 256MW of IT capacity at full build-out to support cloud adoption and the growth of artificial intelligence (AI). The campus has its own dedicated substation, providing customers unrivalled expansion flexibility and speed. This significant milestone was celebrated today with a groundbreaking ceremony attended by Malaysian government agencies and local partners, including: Raymond Tong, President of Vantage’s APAC business, comments, “Today marks a significant milestone for Vantage APAC. Our KUL2 development strengthens our market-leading position in Malaysia while contributing to the nation’s digital economy. We are grateful for the tremendous support and assistance from various government agencies and local partners in empowering our continued growth journey in Malaysia.” Following last year’s announcement to invest an additional planned $3 billion (£2.36bn) into Malaysia, Vantage executed an agreement with Cyberview, the tech hub developer of Cyberjaya, to secure land to build the largest hyperscale data centre campus in the city. The multi-facility campus, designed to support both cloud and high-density computing deployments, will offer customers the flexibility to address evolving market and technical needs. Combined with KUL1, Vantage will have 287MW of IT capacity in Malaysia once both campuses are fully developed. YB Senator, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI), remarks, “We warmly welcome Vantage Data Centers’ plan to build an AI-ready data centre at its KUL2 campus; a strategic move that will not only support Malaysia’s AI aspirations, but also drive economic growth, create new job opportunities, and propel the country’s digital transformation forward. “As the ‘heart, lungs and nerve cells’ of the digital revolution, data centres facilitate the start or expansion of general economic activity. Together with cloud technology and network infrastructure, data centres make up the internet backbone underpinning digitalisation as we know it today. This has, among others, enabled small businesses to thrive, while closing the global socio-economic gap. Malaysia has the edge to facilitate more data centres, particularly AI-focused data centres that could also support Malaysia’s aim to create 3,000 smart factories by 2030. All these will help Malaysia position itself as a leading regional hub for AI-enabled manufacturing.” YB Gobind Singh Deo, Minister of Digital, remarked ” Malaysia is wholly committed to accelerating its digitalisation agenda and positioning itself as a leader in the digital economy, particularly in Southeast Asia, as the nation assumes the ASEAN chair next year. Robust and reliable digital infrastructure is recognized as a crucial component in this endeavour. A strong digital infrastructure, which supports data storage and global connectivity, will be a key enabler in economic growth and innovation.” Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, notes, “We’re absolutely delighted to welcome Vantage’s decision to significantly expand its data centre capacity in Malaysia. This is a major win for our country’s digital infrastructure ecosystem, and it’s a testament to the robust demand for high-quality data centre services in the region. I’m proud to say that as a partner, we’ve been working closely with Vantage to ensure that its investment is a success. We’ve provided them with comprehensive facilitation and support, and we’re confident that it will be able to leverage Malaysia’s unique strengths to achieve regional and global excellence.” Kamarul Ariffin Abdul Samad, Chief Executive Officer, Cyberview, adds, “With the expansion of Vantage Data Centers in Cyberjaya, we mark a significant milestone that underscores Cyberjaya’s standing as a premier destination for hyperscale data centre providers. This development not only reinforces the city’s strategic importance but also reflects our unwavering commitment to fostering innovation and technological advancement for Malaysia. By aligning with the government’s vision to propel the digital economy forward, we are demonstrating our dedication to creating a dynamic and supportive future-ready digital ecosystem in Cyberjaya.” In addition, Vantage has signed an Electricity Supply Agreement (ESA) with TNB, Malaysia’s leading electricity company, for 500MVA-rated power capacity via a dedicated 275kV high-voltage substation for KUL2. “Under TNB’s Green Lane Pathway initiative, we have streamlined the process of powering data centres by bringing together all requirements for grid connectivity to be handled through our One-Stop-Centre (OSC),” says Kamal Arifin A. Rahman, Chief Retail Officer of TNB. “The accelerated delivery time for the project is a manifestation of TNB’s customer-centricity. It also signifies TNB’s commitment to facilitate and hasten the process of powering data centres.” Rahman emphasised that apart from powering at speed, TNB’s grid infrastructure is capable of delivering reliable, stable and secure power at scale with the ability to supply renewable energy sources for the growing number of data centres in Malaysia. “Given TNB’s key focus is to accelerate energy transition and address climate change, our support for data centres will help reduce carbon footprints, thus supporting Malaysia’s sustainability goals and economic growth.” Vantage’s APAC portfolio includes 452MW of operational and planned IT capacity across five markets: Australia, Hong Kong, Japan, Malaysia and Taiwan. For more from Vantage Data Centers, click here.

Ehvert joins forces with Salas O’Brien

Ehvert Mission Critical, a global provider of engineering, construction, and operation services for complex mission-critical facilities and data centres, has announced that it has joined employee-owned engineering and technical services firm, Salas O’Brien. Through this merger, Ehvert leverages its advanced engineering services, underpinned by virtual design and construction expertise, specifically around hyperscale data centres. This will allow for seamless integration with Salas O’Brien’s electrical, mechanical, structural, architectural, renewable energy, and noise mitigation services, effectively addressing the surging requirements of AI. With experts predicting a 160% increase in data centre power demand by 2030, Ehvert says that the union provides a powerful suite of much-needed critical services to an expanding global digital infrastructure ecosystem. The unique merger also creates a combined presence of over 3,600 team members in more than 90 offices globally, enhancing service opportunities for clients and career opportunities for team members. Ehvert and Salas O’Brien share strong company values and a deep commitment to innovation and sustainability. “Vello Ehvert and his team are global leaders in their field,” says Darin Anderson, Chairman and CEO of Salas O’Brien. “Together, we are the most comprehensive provider of innovative, sustainable solutions for hyperscale data centres, addressing the pressing data challenges facing industry and society.” Ehvert is a data centre specialist that leverages advanced technologies to streamline processes from initial design to build-out, technology integration, and ongoing systems support. The company is responsible for its innovative, renowned hyperscale data centre projects across the world, and it is committed to providing the digital infrastructure industry with drastic improvements in construction efficiency and reduced timelines to meet the most demanding and exact requirements. “We are proud to join a future-focused company like Salas O’Brien, continuing the philosophy that formed the basis of Ehvert Mission Critical over 35 years ago,” notes Vello Ehvert, President of Ehvert. “We have evolved into a full engineering, construction, and innovation firm, and Salas O’Brien will enhance the energy design and planning solutions we can bring to our clients.”

TA Realty and EdgeConneX to develop DC campus in Atlanta

TA Realty, a provider of real estate investment management services, and EdgeConneX, a global provider of data centre solutions, have announced the joint development of a 324MW hyperscale data centre campus in Atlanta, Georgia. In addition to acquiring the site, TA Realty, through its dedicated hyperscale development arm TA Digital Group, will manage power procurement and secure all necessary utilities, zoning approvals, permits, and entitlements, addressing the complexities and challenges inherent in these processes. EdgeConneX will bring its comprehensive experience in designing, building and operating data centres. By combining their respective expertise, both companies will aim to ensure the successful delivery of this project with the goal of bringing the site live on time and on budget. This collaborative effort brings together the strengths of each company, in an effort to provide a comprehensive and efficient data centre development process from inception to completion that is optimised for hyperscale customer requirements. TA Realty's extensive background in real estate and its power-first approach to data centres are enhanced by its rich legacy in the Atlanta market, coupled with its broad presence in other Tier 1 markets. Positioned strategically in a key Atlanta sub-market, this location serves as a crucial element in the company's broader plan to develop large-scale data centre complexes in major metropolitan areas. This initiative also highlights TA Digital Group's dedication to sustainable development and proactive community involvement, the company says. Through that dedication, and by harnessing the existing resources and infrastructure of Atlanta, TA Realty aims to not only ensure the enduring value of its assets, but also foster a positive social impact. Leveraging a foundation of innovation, EdgeConneX drives the future of data centres by enabling customers to achieve their vision with customised, build-to-suit data centre solutions on a global scale. Headquartered in Northern Virginia, Singapore, and Amsterdam, EdgeConneX builds infrastructure solutions where, how and when customers need data centre capacity, delivering capacity for content, cloud and AI service providers. With over 80 data centres across North America, Europe, Asia Pacific, and South America, EdgeConneX delivers hyperlocal to hyperscale to hyperdense data centre solutions globally and sustainably. Construction is set to commence later this year, with the first phase of the data centre campus expected to be operational by 2026. This development supports the growing demands for low latency, high-performance computing driven by advancements in AI, cloud services, and other emerging technologies. As businesses increasingly rely on these technologies, the need for resilient and scalable digital infrastructure continues to rise, making this project an essential component of the region's digital growth.

Yondr Group breaks ground on second hyperscale data centre facility

Yondr Group, a developer, owner operator and service provider of hyperscale data centres, in partnership with JK Land Holdings, has broken ground on its second 48MW data centre in Loudoun County, Northern Virginia. Two months on from energising its first 48MW data centre in Loudoun County, the 96MW two-building campus is set to deliver critical cloud capacity. Commencing the construction marks a pivotal phase of the project, which is delivering numerous socio-economic benefits in Loudoun County, including job creation, talent development and a long-term social value legacy. The data centre’s waterless design ensures zero reliance on local water supplies. Eanna Murphy, COO of Design and Construction at Yondr Group, says, “Northern Virginia remains the world’s data centre capital, and we’re delighted to commence this next phase of Loudoun County’s digital infrastructure transformation alongside a partner whose values, morals and ethics mirror our own. “Yondr’s prowess in the data centre market is underpinned by our vision to deliver critical IT capacity at pace, prioritise quality, innovation and sustainability, and spur significant social value throughout our supply chain and the communities within which we operate; with this second phase comprising some one million plus people hours from inception to completion. “Our commitment to investing $2bn in future-ready data centre infrastructure in the American region further cements our expansion, as we deliver a legacy of supporting digital resiliency, digital transformation and the continued adoption of AI and other rapid-growth technologies.” “We’re thrilled to be part of this phase two ground-breaking project that not only enhances global data centre infrastructure but also fosters sustainable growth,” says Chuck Kuhn, CEO of JK Land Holdings, and Founder and CEO of JK Moving Services. “Partnering with Yondr Group aligns perfectly with our commitment to innovation and responsible development, reflecting our shared values and dedication to driving positive change in the communities we serve.”

Vultr announces new CDN in race to be the next hyperscaler

Vultr, a privately-held cloud computing platform, has announced the launch of Vultr CDN. This content delivery service pushes content closer to the edge without compromising security. Vultr now enables global content and media caching, empowering its worldwide community with services for scaling websites and web applications. Traditional content delivery networks are incredibly complex, leaving businesses and web developers needing help to configure, manage, and optimise infrastructure cost-effectively and in a timely manner. They require immediate access to a powerful, scalable, and global content delivery network to accelerate digital content distribution and keep up with customer demand. The launch of Vultr CDN marks the next phase of the company’s growth as a leading cloud computing platform. By adding global content caching and delivery to Vultr’s existing cloud infrastructure, the service simplifies infrastructure operations with unbeatable price-to-performance starting at $10/month, with the industry’s lowest bandwidth costs. For those requiring the highest performance CPUs, Vultr also offers unique high-frequency plans powered by high clock speed CPUs and NVMe local storage, optimised for websites and content management systems. Purpose-built for performance-driven businesses, Vultr CDN delivers a network for fast, secure, and reliable content distribution and is optimised for content acceleration, API caching, image optimisation and more. Seamless integrations with Vultr Cloud Compute enable it to scale automatically and intelligently by selecting the best location for content delivery, thereby optimising user requests to save time and money.  Vultr CDN is now available for use as a beta service with a full release in February.