📊 Get more market insights HERE

🤝 Speak with someone from our global data team HERE 

🖥️ Book a platform demo HERE---

In the latest datacenterHawk podcast, Founder and CEO David Liggitt and VP of Sales & Marketing Mike Netzer unpacked key takeaways from the Pacific Telecommunications Council (PTC) conference. Their discussion highlighted a maturing market facing rising demand, financing challenges, and the need for stronger community relations.

Here are the five trends shaping the future of digital infrastructure:

Pricing has surged 50-75% over the last three to four years due to a supply-constrained market. Higher construction costs, extended timelines, and power shortages are driving these increases. Companies now pay premiums for speed to market, with nuanced pricing structures becoming the norm. End users often pitch in with supply chain resources or capital, making understanding true "all-in" costs critical.

As project sizes balloon, traditional debt markets are adapting. Rising interest rates and stricter underwriting have paved the way for private credit markets. These offer developers alternative financing while filtering out less-prepared entrants. Access to capital is now a key differentiator, as end users prioritize developers with the resources to complete large-scale projects.

Market demand has skyrocketed, with datacenterHawk tracking 15.5 GW of North American leasing in 2025, up from 6.8 GW in 2024. While hyperscalers once dominated, AI and high-performance computing users are now signing leases for hundreds of megawatts. However, power delivery delays could hinder actual absorption despite strong demand.

Constraints in major markets like Northern Virginia and Dallas are pushing development into secondary and tertiary regions. Remote areas with available power are emerging as new hubs. However, rural locations often lack infrastructure like roads and utilities, making development more complex. Developers are also repurposing distressed assets in major cities to secure space.

Community pushback is a growing challenge as data centers expand into unaccustomed regions. Large facilities bring concerns about noise, water usage, and aesthetics, leading to stalled projects. Developers must engage proactively with communities, educating them on benefits like tax revenue and infrastructure improvements to gain support.

The data center industry in 2026 is defined by growth and complexity. Operators must navigate rising costs, secure financing, and address community concerns to thrive. As the digital world’s needs expand, the infrastructure supporting it must adapt faster than ever.

Pricing Shifts and Market RealitiesThe Role of Private Credit in FinancingThe "Gigawatt Era" and Unprecedented DemandExpansion into Secondary MarketsCommunity Sentiment as a Market ForceConclusion

📊 Get more market insights HERE

🤝 Speak with someone from our global data team HERE 

🖥️ Book a platform demo HERE

Latin America accounts for just 2.2% of the world’s data center capacity but represents one of the fastest-growing opportunities in digital infrastructure. While the U.S. and Asia continue their rapid expansion, LATAM is on the brink of transformation, driven by regulatory changes, renewable energy, and rising interconnection demand.

At PTC in Hawaii, Steve Sasse, VP for Latin America at datacenterHawk, spoke with Eduardo Carvalho, Managing Director for Latin America at Equinix. Carvalho, a seasoned executive in the region, shared insights on market evolution, Brazil’s regulatory shifts, Mexico’s power challenges, and the hybrid future of retail and hyperscale deployments.

Brazil remains the heart of South America’s digital infrastructure, but high import taxes have long delayed hardware deployments. A critical legislative change could soon slash these tariffs from 54% to 2%, unlocking AI adoption and hyperscale growth. While hyperscalers wait for this decision before committing to large-scale projects, Equinix remains confident in its ecosystem-driven model, serving 1,000+ customers with interconnection products regardless of the legislation’s outcome.

The conversation also explored Mexico, focusing on Querétaro and Monterrey. Querétaro, an established hub, faces power transmission issues similar to other global hubs. Carvalho noted Equinix is exploring power alternatives and anticipates solutions soon.

Meanwhile, Monterrey emerges as a strong alternative, offering:

• Proximity to the U.S. border: Enabling low-latency links to Dallas.
• Lower power costs: Around $0.06 per kWh versus $0.11–$0.13 in Querétaro.
• Access to natural gas infrastructure: Sharing resources with Western Texas.

Equinix aims to resolve Querétaro’s challenges but recognizes Monterrey’s undeniable growth potential.

A key theme was the distinction between hyperscale and retail interconnection. While Equinix participates in hyperscale through its xScale program (e.g., Google’s deployment at SP5), its strength lies in creating dense interconnection ecosystems.

Carvalho noted that even hyperscale operators rely on Equinix for interconnection services to ensure their clients connect to the broader internet. The region’s future is hybrid, with three verticals emerging:

1. Hyperscale: Massive MW deployments for cloud and AI.
2. Edge: Smaller facilities outside metro areas to reduce latency.
3. Retail: Interconnection hubs that tie it all together.

Despite its growth, the data center industry faces public perception challenges. Governments and communities often don’t understand the role data centers play in powering apps, banking, and essential services, leading to delays in permitting and power delivery.

Sasse and Carvalho agreed on the need for better industry “marketing.” Companies must educate officials and communities about the connection between data centers and economic growth, emphasizing their role in GDP and local benefits.

Though Latin America currently holds a small share of global capacity, its renewable energy, land availability, and stable ecosystem position it for rapid growth. For investors and IT professionals, success will depend on navigating regulatory complexities and power constraints. Those who embrace the hybrid mix of interconnection and scale will see the region’s growth in the next five years outpace the last two decades.

Brazil’s Regulatory Tipping PointPower Challenges and Opportunities in MexicoThe Ecosystem AdvantageFixing the Industry’s Marketing ProblemConclusion

In a recent HawkTalk conversation, Donny Gunadi, Senior Insight Analyst for APAC at datacenterHawk, joined Agus Bintoro, Head of Sales for NTT Indonesia, to examine Jakarta's dynamic data center market. They discussed how a global player like NTT is adapting to a fast-commoditizing landscape, handling new competition, and driving sustained growth. The conversation emphasized NTT's strategy, evolving enterprise and hyperscale demands, and Indonesia's importance in Southeast Asia’s digital infrastructure ecosystem.

As aggressive players enter Jakarta, NTT avoids competing solely on price. Instead, the company executes an adaptive strategy that maximizes global assets and prioritizes high-margin opportunities. Bintoro shared how NTT leverages its "dual-core strength" as a global network provider and data center operator. By integrating services like its global IP network and the new Apricot subsea cable, NTT turns its data centers into essential gateways for international and regional connectivity, offering clients more than just colocation.

NTT's focus in Indonesia is a "balanced mix" of enterprise and hyperscale clients. Hyperscalers drive growth and validate capital investment, while enterprise customers deliver higher margins and demand complex solutions like disaster recovery and IT integration. NTT’s comprehensive portfolio meets these needs, supporting financial stability and market expansion.

Looking to 2026, NTT sees Indonesia’s market as "hypergrowth with specialization." The focus is moving from simply having capacity to having the right capacity. Demand from hyperscalers continues to climb, and AI is driving higher power densities, challenging traditional data center designs. Bintoro noted key hurdles, including securing large-scale, reliable green power and closing the skilled talent gap as the market expands.

Compared to its neighbors, Indonesia stands out for long-term investment. While Singapore is a premium hub with limited capacity and Malaysia struggles with power issues, Indonesia offers sustainable growth. Bintoro highlighted the country’s large, young, and digitizing population and robust economy. NTT sees Indonesia maturing faster than Thailand and presenting better long-term opportunities than Malaysia, making it strategic for digital infrastructure investors.

The conversation with Agus Bintoro illustrates how NTT is thriving in one of Asia’s fastest-growing data center markets. By focusing on value, balancing its client base, and preparing for high-density demand, NTT is solidifying its role in Indonesia’s digital future. For investors and operators, success in this market will depend on delivering resilient, interconnected infrastructure solutions, as Indonesia charts a path of long-term, sustainable growth in the region.

Adapting Through Value, Not PriceBalancing Enterprise and Hyperscale DemandsNavigating Indonesia’s Hypergrowth and ChallengesIndonesia’s Sustainable Future in Southeast Asia

In today’s rapidly changing digital world, data centers are evolving to meet the massive demands of artificial intelligence. In this discussion, Donny Gunadi, Senior Research Analyst APAC at datacenterhawk, sits down with Bass Salah, Joint CEO of ResetData, at Chifley Tower in Sydney. Their discussion delves into the rise of "AI factories," the importance of sovereign cloud capabilities, and how sustainable high-density computing is shaping the future.What Are AI Factories?AI factories are reshaping the concept of data centers. Salah explains how ResetData views AI factories as vertically integrated systems that combine GPU infrastructure, software, and physical facilities to handle complex, parallel processing tasks. Unlike traditional CPU-based systems that process data sequentially, AI factories utilize interconnected GPU clusters to solve multi-layered problems simultaneously, offering unprecedented speeds for data processing. This shift represents a fundamental change in digital infrastructure, enabling businesses to unlock new efficiencies and capabilities.Liquid Cooling: The Key to High-Density EfficiencyAs computing power increases, so does heat generation. Salah highlights how ResetData pioneered liquid immersion cooling to address this challenge. By submerging hardware in dielectric fluid, this approach delivers superior thermal performance compared to outdated air-cooling methods. Liquid cooling not only supports modern GPUs but also improves power usage effectiveness (PUE) and reduces operational costs, making it a cornerstone of ResetData’s infrastructure strategy.The Role of Sovereign CloudData privacy and jurisdiction are becoming critical in today’s landscape. Salah emphasizes the strategic value of sovereign cloud providers like ResetData, which ensure data remains within national borders. With 50% ownership by Century Capital Group (ASX: 200) and 50% by Australian partners, ResetData guarantees data sovereignty, appealing to industries with sensitive IP or regulatory requirements. Rather than competing with major hyperscalers like AWS and Microsoft, sovereign cloud solutions serve as a secure, local alternative for specialized workloads.Sustainability as a PriorityFor ResetData, sustainability goes beyond meeting regulatory requirements - it’s an operational necessity. Salah explains their focus on both economic and environmental sustainability. ResetData facilities use zero wastewater and repurpose existing buildings, addressing the embodied carbon issue while conserving resources like water, which is becoming as critical as power in drought-prone regions. This dual focus positions ResetData as a leader in creating sustainable infrastructure for the long term.Why Businesses Can’t Afford to Wait on AISalah discusses the urgency of adopting AI now rather than waiting for the technology to mature. He explains how businesses that leverage AI to improve efficiency will gain a competitive edge. For example, if an accounting firm uses AI to cut a two-hour task to one, it can double its output or reduce costs, gaining market share. Waiting too long to adopt AI means falling behind competitors who have already optimized their workflows, making it increasingly difficult to catch up.Final ThoughtsThis discussion highlights the transformative nature of AI on digital infrastructure. From liquid cooling and AI factories to the critical importance of sovereign cloud capabilities, the industry is shifting toward higher density, sustainability, and efficiency. For companies, the takeaway is clear: investing in infrastructure now, rather than later, is crucial for staying competitive in an AI-driven world.

📊 Get more market insights HERE

As we enter 2026, the global data center industry is at a critical turning point. Historic absorption rates over the past year have been driven by the growing demand for AI infrastructure. In this episode of the Data Center Hawk podcast, Founder and CEO David Liggitt joins regional leaders Ed Socia (North America), David Sandars (EMEA), Dedi Iskandar (APAC), and Steve Sasse (Latin America) to analyze key trends and predict how power dynamics, emerging markets, and hyperscale strategies will shape the industry in the year ahead.

North America leads in data center development, but the growth is shifting geographically. Regional Director Ed Socia highlights a movement toward nontraditional markets like North Dakota, Wyoming, and Missouri, driven by available power and the need to avoid community pushback. AI providers are building large, master-planned campuses in these areas.

Regions like West Texas are seeing plans for massive 1-gigawatt projects, although network latency keeps traditional hubs like Chicago and Northwest Indiana relevant. Additionally, smaller enterprise demand (20-50MW) is carving a niche alongside hyperscale developments, signaling diverse growth within the market.

In Europe, the Middle East, and Africa, diversification is the name of the game. Regional Director David Sandars notes a slowdown in speculative building, with some projects delayed until 2026 or 2027. Interest is expanding beyond traditional FLAP-D markets to areas like Zaragoza, Spain, and parts of Eastern Europe, including Romania, Hungary, and the Czech Republic.

The Middle East is emerging as a major AI hub, with plans for multi-gigawatt campuses. Its strategic location between Europe and Asia is attracting investments not only from western hyperscalers but also from countries like South Korea, keen to support their tech industries.

The Asia-Pacific market has doubled in size from 5GW to 10GW in just two years. Regional Director Dedi Iskandar highlights that while Japan and Australia remain key hubs, power constraints in major cities like Tokyo are pushing developments into tier-two markets.

Johor in Southeast Asia has quickly become a 2GW market, while India’s rapid growth positions it as a future leader, potentially surpassing Tokyo. Unlike Europe’s cautious pace, APAC’s AI companies demand fast delivery, often seeking 100MW+ capacities within just 3 to 6 months. Emerging hotspots like Melbourne, Chennai, Bangkok, and Vietnam are reaping the benefits, with governments offering incentives to attract digital infrastructure.

In Latin America, Chinese cloud operators such as Tencent, Alibaba, and Huawei have stepped in as US providers focus more domestically. Regional Director Steve Sasse notes expansion across Mexico, Brazil, Chile, and Peru.

Looking ahead, the region is leveraging its renewable energy resources to attract AI-focused hyperscale investments. Brazil leads the market, accounting for nearly 40% of the economic base and introducing legislation to reduce GPU chip import taxes. Meanwhile, Argentina is gaining attention for its vast natural gas reserves, positioning itself as a potential dark horse for on-site power generation.

The global demand for data center capacity shows no sign of slowing, but how that demand is met varies greatly by region. From gigawatt-scale campuses in West Texas and AI hubs in the Middle East to APAC’s rapid tier-two growth and LATAM’s renewable energy strategies, the industry is evolving to address power constraints and shifting needs.

For investors and IT professionals, understanding these regional trends will be critical to navigating and capitalizing on the next wave of digital infrastructure growth in 2026.

David Liggitt, CEO of datacenterHawk, recently spoke with Tahir Gok, MENA Lead and Senior Analyst, about the dynamic growth of the Middle East’s data center industry. Their discussion highlighted the region's evolution from a telco-driven market to a global hub for AI and hyperscale development, examining key drivers, market dynamics, and future trends across the UAE, Saudi Arabia, and other emerging markets.

The Middle East data center market has transformed significantly over the last five years. Initially dominated by telco-owned infrastructure, the entry of hyperscalers like AWS and Microsoft around 2020 marked a turning point. This shift mirrors global trends as the region moves toward a hyperscale-focused ecosystem, positioning itself for rapid growth.

The conversation highlighted AI as the leading catalyst for growth. The UAE and Saudi Arabia are spearheading this transformation with ambitious sovereign AI strategies, fueling unprecedented investment in digital infrastructure. For instance, Microsoft is shipping thousands of Nvidia chips to the UAE, while G42 is building a five-gigawatt compute campus. In total, $7.9 billion has been committed to regional AI-driven expansion. Challenges such as power availability, export licensing, and GPU delivery timelines remain key constraints, but the momentum is undeniable.

Although AI leads the charge, strategies vary by location. The UAE and Saudi Arabia are prioritizing native AI capacity, sometimes bypassing traditional hyperscale builds. Tier 2 markets, such as Qatar, Oman, and Turkey, are growing more conservatively, driven by connectivity and retail cloud demand. Qatar, for example, has a vacancy rate of just 1.17%, thanks to government-led initiatives, while Turkey attracts semiconductor investments through programs like "HIT 30." Oman leverages new subsea cable landings to boost its strategic importance. For operators, understanding these localized dynamics is essential, as regulatory factors often favor ground leases and build-to-suit projects over freehold land transactions.

The region's expansion plans hinge on securing sustainable and scalable power. Both the UAE and Saudi Arabia are exploring solar and natural gas plants to meet the significant energy demands of AI deployments. Tahir Gok emphasized that reducing power costs by up to 50% will be crucial to making large-scale AI projects economically viable. Efficient power infrastructure will be the cornerstone of the region’s growth over the next three to five years.

This discussion underscores how the Middle East has transitioned from an emerging market to a key player in global digital infrastructure. With bold AI goals and massive capital investments, the region is scaling data center capacity at an unprecedented pace. However, success will depend on navigating unique regional strategies, regulatory environments, and power constraints. The trends explored in this conversation will undoubtedly shape the future of data centers, both in the Middle East and worldwide.

Rapid Transformation: From Telco to HyperscaleAI Driving ExpansionRegional Market DynamicsFocus on Power and SustainabilityA Global Digital Hub

The European data center market is rapidly evolving, driven by rising demand for capacity and stricter sustainability requirements. On the HawkTalk podcast, David Sandars, Regional Director EMEA at datacenterhawk, spoke with Mette Berger Gulbrandsen, Chief Marketing & Communications Officer at Green Mountain, about the company’s journey from Norwegian mountain vaults to a pan-European operator while staying committed to sustainability.

Green Mountain’s unique story began in Rennesøy, Norway, where a former NATO ammunition bunker was transformed into a secure and energy-efficient data center. By using the adjacent fjord’s cold waters for cooling and renewable hydropower, the facility became a model of sustainable design. This ingenuity demonstrated that leveraging natural resources isn’t just environmentally beneficial but also operationally efficient.

Following the success at Rennesøy, Green Mountain expanded to Rjukan, another remote Norwegian location ideal for secure, sustainable operations. However, the company recognized the need for proximity to economic hubs to meet client requirements for low-latency workloads. This shift led to the opening of a facility near Oslo and marked the start of a strategic “hub and spoke” model.

Green Mountain’s growth accelerated after its acquisition by international owners in 2021, boosting resources for expansion. The company struck a major deal with TikTok in 2023 and began international projects, including a London acquisition and a development in Frankfurt. This balanced approach allows Green Mountain to offer clients both cost-effective, sustainable remote storage and urban connectivity.

Green Mountain’s upcoming Frankfurt facility showcases how data centers can tackle power and environmental challenges. Partnering with local energy provider KMW, the site will utilize renewable wind and solar power, while replicating Green Mountain’s water-cooling method using river water.

The facility will also employ gas turbines for backup power, reducing emissions compared to diesel generators, and feed excess heat into the district heating system, warming 20,000 homes. This innovative partnership not only addresses power constraints but also integrates into the local energy ecosystem to add community value.

Green Mountain actively addresses local concerns by showcasing the economic benefits of its projects. Independent studies revealed the construction of its 90 MW site generated $600 million in value and supported 4,700 full-time jobs.

In addition to data-driven evidence, the company engages communities through open days, educational programs, and support for local initiatives. This combination of transparency and outreach has helped Green Mountain build trust and secure long-term community support.

Green Mountain’s journey from a single mountain facility to a leading European data center operator underscores the maturity of the Nordic market. The company has proven that sustainability is not just a value-add but a necessity for scaling operations. Its innovative use of geographic resources, partnerships with energy providers, and commitment to community engagement set a high standard for the industry.

As demand for capacity grows, Green Mountain’s success highlights the importance of creative infrastructure reuse and deep integration with local energy systems, paving the way for a more sustainable future in data center operations.

Repurposing History for Modern Data NeedsExpanding with Strategy: Remote vs. Urban HubsFrankfurt: A Blueprint for Energy CollaborationDemonstrating Economic and Social ImpactA Roadmap for Sustainable Growth

In a recent discussion, datacenterHawk's Regional Director for the Americas, Steve Sasse, sat down with Pablo Amarelle, General Manager of Zonasur, to explore the burgeoning data center landscape in Argentina. The conversation provided a detailed analysis of why Argentina, despite being the third-largest economy in Latin America, has lagged in digital infrastructure and how recent shifts are positioning it for significant growth. Amarelle offered an insider's perspective on the unique advantages of the Bahía Blanca region and the strategic role of Zonasur's free trade zone in attracting large-scale investment.

Historically, Argentina's digital infrastructure development has been hindered by economic instability, high inflation, and capital controls. Amarelle explained that these factors created uncertainty, which is detrimental to the long-term, capital-intensive nature of data center projects. However, a new political and economic landscape is changing perceptions. With capital controls being lifted and growing geopolitical support, investors are now viewing Argentina as a prime opportunity for growth, ready to address the existing lack of modern infrastructure.

A significant portion of the discussion focused on the strategic benefits of developing data centers in Bahía Blanca. Amarelle highlighted two key differentiators: power availability and the free trade zone (FTZ) tax regime. Bahía Blanca is an "exporter node" of electricity, generating over two gigawatts and poised for more with upcoming wind farm projects. This local abundance of power mitigates transmission bottlenecks seen elsewhere. Furthermore, operating within the Zonasur FTZ exempts data centers from a 27% value-added tax on energy and eliminates import duties on equipment, providing immense cost savings and certainty for investors.

Addressing another critical infrastructure pillar, Amarelle confirmed that Bahía Blanca is a major connectivity hub. It serves as a node for multiple carriers, with redundant fiber routes connecting to Buenos Aires and the subsea cable landing station in Las Toninas. The latency to Buenos Aires is an impressive 5.5 to 7 milliseconds, making it a viable location for latency-sensitive applications. This combination of robust power, a favorable tax structure, and strong connectivity positions the region as an ideal alternative to congested primary markets, allowing developers to scale efficiently.

The dialogue between Sasse and Amarelle painted a compelling picture of a market at a turning point. For data center operators and investors, Argentina represents a market with untapped potential, a highly skilled workforce, and a growing knowledge economy. The strategic groundwork laid by organizations like Zonasur in Bahía Blanca provides a clear, de-risked path for entry, offering the power, connectivity, and financial incentives necessary to support the next wave of digital infrastructure development in Latin America.

Overcoming Past InstabilityThe Power and Tax Advantage of Bahía BlancaConnectivity and Strategic Location

The data center industry's approach to power is undergoing a major transformation. What was once a straightforward connection to the grid has become a complex, strategic challenge. At the Advancing Data Center Construction conference, Mike Netzer of datacenterhawk spoke with Tim Stephenson, Director of Power Generation for Aligned Data Centers, to discuss the shift toward onsite power generation and its implications for the sector.

One of the key shifts highlighted was the move from traditional grid reliance to "behind-the-meter" power solutions. This approach creates an independent, self-sustained power source solely for a data center campus, disconnected from the public grid. With utility infrastructure struggling to keep up with the industry’s 15-17% annual growth in power demand, onsite power generation offers operators greater control, reliability, and the ability to build facilities in areas where grid power is insufficient or unavailable. As Stephenson explained, “We’re looking at being completely off the grid, developing power designed exclusively for our data centers.”

The transition to onsite power requires more than simply replacing grid power with a single alternative. Aligned employs a hybrid approach, integrating technologies like natural gas combustion turbines, reciprocating engines, and fuel cells to handle diverse power needs. Modern computing loads are volatile, spiking from 30% to 100% usage within milliseconds, so Aligned also incorporates battery energy storage systems (BESS), synchronous condensers, and supercapacitors for added stability. This layered strategy ensures reliability and prevents power disruptions.

Onsite power generation brings clear advantages, including guaranteed availability, independence from utility curtailments, and scalable capacity that can grow from 100 megawatts to a gigawatt. However, these benefits come with challenges. Costs are significant, with natural gas power costing 7 to 8 cents per kilowatt-hour—higher than grid power, which benefits from economies of scale. Additionally, developing onsite power requires navigating complex permitting processes for air and water, securing fuel supply infrastructure, and addressing potential community concerns about hosting a private power plant.

Data centers demand near-perfect uptime, and onsite power plants must deliver. Stephenson revealed that Aligned designs its private power plants for 99.9% reliability, far surpassing traditional commercial plants. This is achieved through modular designs and redundancy. Instead of relying on large, single units, Aligned’s plants use smaller modules like individual turbines or fuel cells. This modularity allows maintenance on one unit without disrupting overall power supply, ensuring continuous operation.

As grid constraints persist, the shift to onsite power will become more widespread. Site selection is already evolving, prioritizing access to natural gas pipelines over proximity to grid interconnects. While natural gas serves as a key bridge technology, the long-term vision includes cleaner, advanced energy sources. Small Modular Reactors (SMRs), though promising, remain several years away from commercial viability, with Stephenson estimating a 7-8 year timeline.

The future of data center power lies in a sophisticated mix of technologies, strategic site selection, and innovative energy solutions. By embracing onsite power generation, operators can gain greater control over their energy needs while building infrastructure for the next era of growth.

Moving Toward "Behind-the-Meter" PowerA Multi-Layered Power StrategyBenefits and ChallengesBuilding for Unmatched ReliabilityThe Future of Data Center Power

In a recent datacenterHawk podcast, VP of Sales Mike Netzer spoke with Thomas Jam, Founder and CEO of Copenhagen Atomics, about nuclear energy's role in powering the growing data center industry. The discussion centered on next-generation thorium molten salt reactors, exploring their potential to deliver scalable, cost-effective, and reliable energy. Jam delved into the innovations driving his company, the regulatory challenges, and his long-term vision for transforming global energy.

Copenhagen Atomics' mission is clear: disrupt the energy market by creating reactors that are at least ten times better than existing solutions. For Jam, cost is the most critical factor, with a goal of making his reactors five times cheaper than conventional nuclear plants. To achieve this, the company focuses on overcoming long-standing challenges in nuclear power, including lengthy construction timelines, cost overruns, waste management, and safety concerns. Their approach integrates fuel reuse and streamlined manufacturing to drive down the overall cost of energy production.

While ambitious, the path to commercialization is complex. Jam discussed the extensive regulatory process, from site approvals to safety and operational permits, which has pushed their production goal from 2028 to 2030. A demonstration reactor planned for 2027 in Switzerland marks a key milestone in their journey. Jam also highlighted a U.S. initiative aiming to deploy new reactors by 2026, reflecting growing momentum in the nuclear sector. In the long term, the company envisions mass production, with a goal of manufacturing one 100 MW thermal reactor per day, adding 10 gigawatts of electrical capacity annually—a transformative scale for energy-intensive industries.

The conversation turned to nuclear power's application in data centers. Jam explained that the financial viability of a dedicated, behind-the-meter nuclear power plant depends on scale. For smaller 100 MW data centers, connecting to the grid is more economical. However, as campuses scale toward one gigawatt, building private power infrastructure becomes more attractive to avoid high grid service costs, which can double electricity prices. Jam emphasized the complexity of this approach, which requires multiple reactor units, backup systems, and potentially battery storage to meet the high reliability demands of data centers.

Jam placed data center energy needs within the broader context of global consumption. Heavy industries like steel, concrete, and aluminum manufacturing remain far more energy-intensive. For example, one oil refinery can use five gigawatts of heat, dwarfing the energy demands of most data center campuses. Jam projects a tenfold increase in global energy usage over the next century and argues that only nuclear energy can scale to meet this growth. He believes nuclear will become a cornerstone of the future energy mix, as other sources face scaling limitations.

The discussion underscored a key reality: while nuclear power is poised to play a vital role in data centers, its integration will be a deliberate process. On-site nuclear reactors for every data center may not be practical, given the economic and regulatory complexities. Instead, the most impactful applications will emerge at the gigawatt scale, reshaping the grid and powering the largest infrastructure campuses. Copenhagen Atomics’ focus on creating a better, scalable energy solution highlights a vision extending far beyond today’s needs, addressing long-term global energy challenges. For data center operators and investors, the takeaway is clear—nuclear power holds transformative potential, but its full impact will come through strategic, large-scale deployment.

Aiming for Radical ImprovementChallenges on the Road to DeploymentWhen On-Site Nuclear Makes Sense for Data CentersThe Bigger Picture of Global Energy DemandA Strategic Path Forward