GROWTH

North American data-center inventory grew by 24.4% year-over-year in the first quarter of 2024 among markets tracked by CBRE Group Inc. (NYSE: CBRE). Northern Virginia, the world's largest data-center market, led with 391.1 megawatts of new supply. That market also had the largest year-over-year net absorption, at 407.4 MW, and lowest vacancy rate, at 0.9%, in Q1.

Why Data Centers (other than AI)

Data center growth is underpinned by how the pandemic supercharged online and especially video activity, triggering a surge in Zoom calls, photo-sharing and social media use. Novel technologies such as artificial intelligence and autonomous driving could spur further expansion. Google's planned data center in Canelones would power user requests for its array of internet services, such as YouTube, Gmail and Search.

Water Use

Most of the water used in cooling evaporates, meaning it can not be retained for other uses.

2022 Google's 20+ data centers consumed approximately 5.22 billion gallons of water

(domestic water consumption of nearly 175,000 people in the United States)

https://www.reuters.com/article/technology/feature-in-latin-america-data-center-plans-fuel-water-worries-idUSL8N3AU1PY/

OPPOSITION

GLOBAL PUSHBACK The pushback against Google's plans in Uruguay comes amid growing opposition to data centers around the world - from Europe to the United States and elsewhere in Latin America.

2020 Chile - local residents and authorities filed a formal complaint against Google's planned data center at the country's environmental court in 2020

Microsoft Chile (Quilicura) - A plant close to Google’s Chilean facility proposed - opposition, delaying the approvals process amid concerns from the local community about its potential impact on an ecosystem already suffering from dry weather. Microsoft committed not to draw water from nearby sources, led to approval from most local public bodies.

ECONOMIC BENEFIT

Tech companies highlight the positive economic impact of data centers. But critics say data centers create few jobs and give little back in exchange for the resources they use, compounding public anger as water scarcity impacts daily life.