Data centres are increasingly built ahead of time
And demand is keeping up. So far.
The demand for new data centres has changed a long-standing norm in their construction - many are now built ahead of demand.
Earlier today, I spoke with a data centre operator who told me that their soon-to-be-launched data centre is already fully sold out. For all phases.
And this isn't an isolated case either.
Build and they will come
Data centres used to take a long time to build. They require careful planning, significant investments and are built to precise specifications.
The result? Data centre operators typically do not build new facilities until they have POs firmly in hand. They are cautious and err on the side of caution.
Not anymore.
As I wrote two weeks ago, surging demand and a fixation on AI means data centre operators must move very fast or risk being left out in the cold.
In some markets in Southeast Asia, not having a site with access to adequate power and water can immediately drive potential customers to competitors.
The result is an incredible surge of new data centre announcements as new facilities are built at a record pace. And it turns out that demand is keeping up.
Fast and faster
With new modular construction techniques and expedited approvals for power, data centres in Johor are going operational in as little as 12 months.
Interestingly, some data centre operators are being pressurised to further accelerate delivery to preempt potential GPU restrictions.
Here's what I'm hearing:
- Some customers are ordering older GPUs they can purchase today over upcoming models.
- Other customers are ordering GPUs first ahead of data centre readiness despite the financial hit.
Same, but not the same
I just have one observation to make: Not every data centre is built with the same workloads in mind.
For instance, STT GDC's STT Johor 1 data centre - which had its groundbreaking last week, has just 16MW of IT capacity for phase 1.
In comparison, AirTrunk recently unveiled its second data centre campus in Johor that will bring its total capacity to a staggering 420MW when completed.
To me, it would appear some are more focused on enterprise IT workloads, while others are working more with hyperscale and AI customers. Of course, the majority probably work with a combination of enterprise and hyperscale customers.
I would love to hear your thoughts on this.