Currents Ep293: Data Center Financings
Apr 11, 2025
Claus Hertel, a managing director at Rabobank specializing in energy transition, joins Melih Ileri from DC BLOX, and Mike Johnson from Nomura, to delve into the booming data center financing landscape. They discuss the explosive demand driven by AI and cloud technologies, emphasizing sustainable energy solutions. The trio sheds light on financing complexities, recent multimillion-dollar investments, and the critical importance of data center locations. Trends in adapting financing strategies for both large hyperscale and smaller data centers are also explored, highlighting innovative solutions for future challenges.
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Data Center Power Demands
- Data centers require substantial power, necessitating 150-250 terawatt-hours more by 2030 in the U.S.
- Power demand has surged due to increased data consumption from video, AI, and cloud applications.
Balancing Sustainability and Power Needs
- Data centers prioritize sustainable energy solutions but face power lead times.
- They explore bridging solutions like on-site natural gas generation with future renewable integration.
Data Center Site Selection Criteria
- Data center site selection prioritizes established markets, customer preferences, and workforce availability.
- Key factors include power timelines, land costs, water access, and sales and use tax exemptions.