IDCA

Digital Economy Think Tank

[IDCA @IDCAorg]

Water Usage is Not a Simple Issue 💧 - Story of the week

Concerns about water consumption are at the center of many community pushback efforts regarding large new data centers, in the US and elsewhere. Even though data centers worldwide use only 0.1% of all the water available for human consumption, local concerns nevertheless often arise.

Developers also point out that new AI centers will most likely use closed-loop, direct-to-chip cooling (required because of the amount of heat generated by high-end GPUs), which does not use water during operations. But developers, planners, and communities should also look at indirect water usage, that is, the amount needed by utilities to provide the power for new data center facilities. Nuclear energy, for example, consumes 500 to 1,000 gallons of water per megawatt hour. A gigawatt-scale nuclear reactor thus needs several millions of gallons of water per day; should new facilities be built that focus on providing power to new AI centers, the water issue thus becomes a valid concern. The large gas turbines being proposed for some facilities use only about 20% of the water required by nuclear plants to provide the steam to turn the turbines and generate electricity. But of course the gas turbines do emit CO2, unlike nuclear power plants.

The idea of using solar and/or wind power for new large facilities thus emerges, as this type of energy does not consume water and does not produce CO2 emissions. But these technologies require large amounts of land, as much as 10 acres per megawatt, and the wind towers or solar panels are themselves are not green when being manufactured or at the end of their lifecycle.

Data centers deliver all of today's cloud stage services, social media, video streaming, business processing, modern manufacturing and logistics, smart transportation grids, other smart city services. They are the foundation of a growing, global Digital Economy that has reached between 4% and 25% of every nation's overall economy. Data centers are the foundation of $20 trillion in digitalized economic products and services.

They will continue to grow, with numerous AI centers and hubs representing almost $1 trillion in investment already being planned. The influential Telecommunications Information Association (TIA) recently noted that investment in data centers and AI hubs is now ten times higher than investment in global telecommunications; this investment level now exceeds that of the oil and gas business as well, for the first time in history.

The discussion of water thus requires a serious, detailed conversation. It cannot be the sole province of kneejerk responses, but requires good faith, transparent information from data center developers, savvy local political leaders who take the issue seriously, and communities who wish to engage beyond the surface level.

[IDCA @IDCAorg]

⚡️Tech7 Issues New Statement on Growth of Digital Technologies

“Digital technologies are now central to economic security, geopolitical influence, and long-term competitiveness,” according to a new statement from Tech7, an initiative within Digital Europe. “Artificial intelligence, advanced connectivity, cloud infrastructure and data-driven innovation are transforming how economies grow, how public services are delivered, and how societies function.” The organization is focusing on AI adoption, and represents companies that are designing and building out digital infrastructure.

[IDCA @IDCAorg]

⚡️Utah Governor Seeks “Higher Standard” for Data Centers

The governor of the western US state of Utah @GovCox has signed an executive order outlining what's called a Data Center Framework that includes setting a “higher standard” for the state. The order directs state agencies to prioritize protection of the state's water and air-quality resources, safeguard utilities' ratepayers, mitigage wildlife impacts, and support transparent public engagement by data center developers.

[IDCA @IDCAorg]

⚡️Amazon Touts “Radical New Network Design”

A new conception involving random graph theory to data center design is being touted by $AMZN as a way to a more efficient future. The design involves moving beyond traditional tree-like heirarchies, in which processing outputs progress logically through series of steps. The random graph approach can obviate bottlenecks and increase resiliency by reducing single points of failure, according to the company.

[IDCA @IDCAorg]

@EmmanuelMacron C'est une bonne nouvelle!

[IDCA @IDCAorg]

⚡️Ohio Governor Suspends Data Center Tax Break

The Midwestern state of Ohio in the US is becoming a popular destination for large new data center projects. As community concerns arise, the state's governor @GovMikeDeWine has now suspended a tax break that is linked to attracting new data center business to the state. Residents are also working to place new restrictions on data centers onto the upcoming November general election.

[IDCA @IDCAorg]

⚡️Telefónica and Google Team Up for Spanish Sovereign Cloud

Spanish company @Telefonica and Google Cloud plan to deliver a new sovereign cloud offering for Spanish public administrations and private companies. The plan is to offer Google Cloud Data Boundary services through local infrastructure designed to “provide verifiable controls over data protection (and) residency and personal access.”

$VIV $GOOGL $GOOG

[IDCA @IDCAorg]

⚡️Ascenty Investing $1.2 Billion in Brazil

Data center infrastructure company @Ascenty has begun a $1.2 billion investment plan to build four data centers in the state of São Paulo, Brazil. The company plans to start operations in Q3 2027 in the city of Sumaré, where Ascenty already operates two data center buildings. The plan also calls for expansion of the company's second data center in Vinhedo, and to build a third facility at the same site. Construction is expected to begin in the third quarter of this year.

[IDCA @IDCAorg]

@EmmanuelMacron C'est une excellente nouvelle!

[IDCA @IDCAorg]

The evolution of data center cooling reflects a fundamental shift in how digital infrastructure is designed and operated. From traditional DX air systems with high energy consumption, to evaporative cooling models balancing water and power trade-offs, and modern-day closed-loop liquid cooling enabling high-density AI workloads, each phase represents a critical step in supporting the next generation of digital economies.

[NITDA Nigeria @NITDANigeria]

PRESS RELEASE

NITDA, IDCA Launch Execution-Driven National Digital Infrastructure Initiative to Position Nigeria as a Leading Digital Economy

[IDCA @IDCAorg]

⚡️Digital Economy Growing Rapidly in Italy

A report from the International Trade Administration (part of the US Department of Commerce) finds that 🇮🇹 Italy's digital economy "has grown significantly in recent years," spurred by improved connectivity and internet access, government initiatives, and access to technology. The country's digital economy is now seen as the primary driver for economic growth, backed by funding within the EU Cohesion Policy.

[IDCA @IDCAorg]

⚡️Gas Turbine Manufacturers on Hot Seat as Demand Spikes to New Levels

Gas turbines are a hot item within the burgeoning AI development space, with multi-year wait lists arising from unprecedented demand to power new AI hubs. Only three companies hold 70 percent of the market for the industrial-scale turbines able to muster the power required by AI centers – GE Vernova (US), Siemens Energy (Germany) and Mitsubishi Heave Industries (Japan). The latter of these, Mitsubishi, is now ramping up operations. Backlogs among the three are reported to match and even exceed the 100GW level at each of the three companies, so Mitsubishi has announced it will double its production for the next few years.

$GEV $SIEM.NE $MUFG

[IDCA @IDCAorg]

⚡️UGI and Prime Data Centers Develop Agreement for Pennsylvania Project

$UGI Corporation is partnering with Prime Data Centers to develop major natural gas supply infrastructure in Pennsylvania’s northern tier, in support of one of the state’s most significant energy and technology investments. In this agreement, will sell Prime property to build a proposed on-site gas-fueled electric generation facility. UGI will retain approximately 15 billion cubic feet of underground storage capacity and oil and gas rights associated with the property.

[IDCA @IDCAorg]

@DeItaone Many are realizing that nuclear energy is the answer to the global energy shortage

[IDCA @IDCAorg]

⚡️West African Nation Guinea Joins Medusa Cable Project

The West African nation of Guinea 🇬🇳 has joined the Medusa submarine cable project, adding a second connection to the nation's connectivity infrastructure and thereby reducing its total dependence on its existing connection to the ACE cable. The prime minister of this nation of 14 million people called this new development "a matter of sovereignty and security."

[IDCA @IDCAorg]

@TheRealBeliveau There are fundamental misunderstandings about data centers in the public sphere that need to be addressed by responsible experts.

[IDCA @IDCAorg]

⚡️Nvidia and Iren Sign Multi-Billion-Dollar Agreement

$NVDA and $IREN have announced a strategic partnership centered on AI infrastructurek in which Iren granted Nvidia a five-year right to buy as much as $2.1 billion of the company's stock. At the same time, IREN signed a five-year, $3.4 billion AI cloud contract with Nvidia, under which IREN will provide managed GPU cloud services using air-cooled Blackwell systems deployed within roughly 60MW of existing data center capacity at its Childress, Texas campus. Activities are slated to start early in 2027.

[IDCA @IDCAorg]

@zerohedge Data centers are driving innovation in the energy sector