JLL's Groundbreaking Data Centre Expansion Approved
Global real estate leader JLL has recently received unanimous approval for its innovative data centre project, dubbed 'Project Hydroscale', at the STAMP site in Genesee County, New York.
The development involves the creation of a 45-acre campus, which will house two substantial two-story data centres, each spanning 450,000 square feet. It's a strategic move to accommodate the burgeoning demand for advanced artificial intelligence (AI) capabilities.
Upon completion, the project is not only expected to generate approximately 60 new full-time positions but also anticipates leasing the facilities to clients on a 20-year basis, focusing on the advancement of AI technologies. However, it's worth noting that the project has encountered some resistance, particularly from PRP Real Estate Investment of Washington DC, who allege that JLL's project has received preferential treatment. The estimated investment for Project Hydroscale stands at an impressive US$3.8bn.
Embracing Technological Innovations
With its headquarters in Chicago, JLL is at the forefront of leveraging technology for future advancements, especially within the data centre sector. Offering expert advice and construction management services, the company is committed to guiding data centres towards achieving sustainability goals, including net-zero carbon, emissions, and waste.
JLL has observed a significant shift in data centre technologies globally, as highlighted in its recent EMEA data centre report, which notes a 16% surge in data centre supply across major European markets in 2023 alone. "In a world increasingly fuelled by the internet, data and AI, demand will continue to rise for real estate to make it all happen," explains Tom Glover, JLL's Head of Data Centre Transactions for EMEA. He further anticipates 2024 to witness unprecedented activity in the sector, buoyed by record levels of uptake, demand, and preleasing in 2023.
The demand for data centres is also skyrocketing in the US, maintaining its status as the country with the highest number of data centre facilities globally. This booming sector is expected to generate a massive US$99.16bn in revenue by 2024, underscoring the pivotal role of connectivity and cloud services across the nation.
The Rise of AI in Data Centre Operations
The STAMP site targeted by JLL is poised to become a hub for major private projects, including those by Plug Power and Edwards Vacuum, facilitating the growth of large-scale, high-tech industries. JLL's aim to lease its new campus for AI-enhanced operations aligns perfectly with the current technological landscape, where AI and the Internet of Things (IoT) are driving the expansion of edge IT infrastructure.
As per JLL's predictions, the global edge data centre market is set to reach a staggering US$317bn by 2026, demonstrating a 107% increase from its 2020 valuation of US$153bn. This growth reflects the critical role of AI in transforming data centre efficiency, security, and scalability.
This new venture at STAMP is more than just a development; it's a strategic investment in the technological future of the US, aiming to meet the digital demands of a wide array of customers. With an eye towards bolstering AI and technological growth, JLL's project exemplifies their commitment to innovation and sustainable development in the digital age.
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