Burgeoning demand for data centers, led by AI and edge computing trends, has led to inventory and power availability concerns, according to a recent JLL report. 

Cloud computing and hyperscaler demand continue to dominate larger data center markets. The country’s largest market, Northern Virginia, signed 1.6 gigawatts of transaction volume in 2023, leading the state’s legislators to consider a bill that would require operators to meet power usage effectiveness standards and procure carbon-free renewable energy to qualify for tax exemption. New AI-focused data centers are also springing up that do not require backup power and occupy smaller physical footprints than tradition centers the report says. Colocation providers are rapidly upgrading their infrastructure to meet demand, with hyperscalers expanding their footprint with AI-ready data centers.

Demand is also leading HVAC, power management and building control firms to shift their business strategies to focus on data centers. Modine acquired data center-focused air handling manufacturer Scott Springfield in late February, as the company Modine grew sales in the market 34% year over year in the third quarter of company’s fiscal year, ending Dec. 31, 2023. Johnson Controls also attributed strong sales growth in its North America HVAC & controls segment, which grew by low teen percentages year over year, to strength in its applied HVAC business, which serves the fast-growing data center market, CFO Marc Vandiepenbeeck said on an earnings call. 

Here’s a look at Facilities Dive’s recent data center news reporting.