DC BLOX: Fiber and Power Availability Key Challenges for Growing Data Centers

DC BLOX sees a business model for building regional data centers in places like Greenville, South Carolina, Chattanooga, Tennessee, and Birmingham, Alabama, Alan Poole, general counsel of the Atlanta-based company, said during an Incompas webinar Thursday. As connected devices became more powerful, tech companies realized they needed to move data centers and computing power closer to users, Poole said in a conversation with Incompas CEO Chip Pickering during the session. COVID-19 spurred tech growth, Poole said: “The investment in digital infrastructure around that time to help meet the pace of demand was wild, awe-inspiring, and we’re still going through that,” he said. A key element DC BLOX considers is how welcoming a city will be to investment, as data centers require access to land and electricity. The company also examines potential tax incentives to build. Policymakers must ask what they’ll do if one developer takes all the available power, which is “happening all over the country,” Poole said. One center can require up to one gigawatt of power, which is "eye-popping.” Accordingly, the ability of data centers to generate power onsite, including “green” energy, will become increasingly important, he said. Communities should decide whether they want to compete “because there are many [competing] markets” and they are offering tax and other incentives. “At least at DC BLOX we’re doing everything we reasonably can to head off community concerns as soon as possible, because it makes more sense financially.” The availability of large enough fiber pipelines to handle growing demands is also a concern. “Is there enough fiber on all these routes?” Poole asked. “It was assumed, until very recently, that we were never going to need materially bigger conduits and that has proven absolutely untrue.” Some markets getting high-speed internet for the first time don’t have a nearby internet exchange point yet, allowing ISPs to exchange data with other networks: “That’s where the true internet compute happens and if you’re not close to one of those exchanges, you have problems with things like latency that might make real-time videoconferencing … unworkable.” Pickering said he loves the focus on “Tier 2” markets. “Those are great emerging hubs” and data centers “are a critical component and a critical piece of the infrastructure to make those hubs grow, succeed, prosper.” As communications technology rapidly evolves, “electricity is still kind of in the old world,” Pickering said. As the U.S. competes with China, “electricity and energy really is the supply-chain critical component.”