Data centres, and managing AI risk
STORIES OF TRANSFORMATION: To meet the compute demands of AI companies, data centre construction is surging. Private capital is playing a key role in financing that buildout: but just as new projects are on the rise, so is public opposition.
The demand for computing power to support artificial intelligence (AI) applications is driving a surge in data centre construction worldwide. Private capital is playing a crucial role in financing this expansion, but the proliferation of new projects is facing increasing public opposition across various locations.
Communities are voicing concerns over land use, energy consumption, and noise pollution generated by these facilities. Moreover, broader societal apprehensions about AI's impact are further fueling this opposition. Notably, influential figures from companies like Anthropic, OpenAI, and Google DeepMind have amplified these worries.
In the United States, the political landscape has become entangled with these issues. During the recent midterm elections, data centre construction has emerged as a contentious topic. States like Texas and New York have implemented temporary restrictions on the development of new facilities in response.
Australia, with its vast land and energy resources, stands out as a region witnessing the most substantial buildout. Infrastructure investment firm Morrison, originally based in New Zealand, has been notably active in this space. Morrison has backed the development of the Canberra Data Centres hyperscale platform and recently established a joint venture with French telecommunications company Orange.
In this episode of Stories of Transformation, Morrison's Chief Information Officer, Will Smales, joins the discussion to shed light on the data centre opportunity amidst public opposition. He delves into the significant investments in Australia (1:28), the role that superannuation funds are playing (2:30), the extent of public opposition to data centre construction (4:19), and how private capital should adapt to these challenges (7:45).
Smales also addresses vulnerabilities to AI demand (8:46), strategies for securing public consent for new projects (11:34), and emphasizes the critical importance of site selection (13:27).
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
