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Data Center News > Blog > Global Market > Data center costs surge up to 18% as enterprises face two-year capacity drought
Global Market

Data center costs surge up to 18% as enterprises face two-year capacity drought

Last updated: June 28, 2025 5:09 am
Published June 28, 2025
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Data center / enterprise networking
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Contents
Maximizing what you’ve gotThe lengthy wait

“AI workloads, particularly coaching and archival, can take in 10-20ms latency variance if offset by 30-40% value financial savings and warranted uptime,” stated Gogia. “Des Moines and Richmond supply higher interconnection range at the moment than some saturated Tier-1 hubs.”

Contract flexibility can be essential. Slightly than conventional long-term leases, enterprises are negotiating shorter agreements with renewal choices and exploring revenue-sharing preparations tied to enterprise efficiency.

Maximizing what you’ve got

With enlargement turning into extra pricey, enterprises are getting severe about effectivity via aggressive server consolidation, subtle virtualization and AI-driven optimization instruments that squeeze extra efficiency from current area.

The businesses performing greatest on this constrained market are specializing in optimization fairly than enlargement. Some embrace hybrid methods mixing current on-premises infrastructure with strategic cloud partnerships, decreasing dependence on conventional colocation whereas sustaining management over essential workloads.

The lengthy wait

When may reduction arrive? CBRE’s evaluation reveals major markets had a report 6,350 MW beneath development at year-end 2024, greater than double 2023 ranges. Nonetheless, energy capability constraints are forcing aggressive pre-leasing and lengthening development timelines to 2027 and past.

The implications for enterprises are stark: with development timelines extending years as a consequence of energy constraints, corporations are primarily locked into present infrastructure for at the very least the following few years. These adapting their methods now shall be higher positioned when capability ultimately returns.

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See also  Centiel wins Intelligent Data Centre Project of the Year
TAGGED: capacity, Center, Costs, data, drought, enterprises, face, Surge, twoyear
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