Data Center Development Partner in the Age of AI

NDC-GARBE 25/02/2025

In recent years, the data center industry has experienced significant growth. The exponential advancement of artificial intelligence (AI) is now driving a fundamental shift that is reshaping data center design. To meet the evolving needs of hyperscalers, a new developer-partner model is essential.

Industry changes are expected to reduce reliance on the traditional colocation model, leading companies to invest more in build-to-suit data centers. This shift places greater emphasis on the pre-development process. The rapid increase in AI-driven demand can no longer be met with current infrastructure. As a result, development partners must adapt their service offerings to support the specific demands and scale of AI advancements over the next five years.

Energy as a Key Factor for AI Data Center Operations

At the core of this transformation is the need for greater access to renewable and sustainable energy. A single generative AI search query can consume up to 15 times more energy than a traditional search engine query. Due to the higher energy consumption of AI systems, cloud and colocation operators will need to increase power density from the current 3 kW/sqm to at least 10 kW/sqm. Accommodating this increase will require larger facilities with optimized designs to meet higher space and energy demands, as well as a revised investment approach.

For hyperscalers, this high-density design marks a faster shift from the colocation model to build-to-suit data centers. Over the next five years, driven by substantial investment requirements, hyperscalers are likely to turn to leasing powered shell-and-core facilities to quickly and efficiently establish future-proof AI capabilities in their own data centers. As a result, they need development partners like NDC-GARBE, who offer both powered shell-and-core solutions as well as build-to-suit services.

Rising electricity consumption and power generation capacity will require significant investments, particularly to align with renewable energy targets. As data centers increasingly become critical infrastructure, seamless access to water, fiber optics, and electricity is essential, along with sustainable strategies for waste heat reuse and energy sourcing. This transition demands deep expertise and a coordinated approach to integrate data center expansion within a connected, sustainable energy ecosystem—maximizing both operational efficiency and societal benefits.

A New Type of Development Partner for Data Center Construction

The evolving demands of data center construction also bring increased development risks for hyperscalers. Development partners must leverage their expertise to guide and support clients through the pre-development phase, ensuring successful project outcomes.

One effective solution is the implementation of a “team-of-teams” model. In this approach, the development partner serves as the central coordinator, while leveraging a network of specialized experts for targeted insights. This structure provides hyperscalers with local, high-quality expertise in areas such as land acquisition, energy procurement, data center construction and design, pre-construction planning, permitting processes, capital and investment financing, and land portfolio management—delivering a critical competitive advantage.

Ensuring the Future of the Data Center Industry

It is crucial for the data center industry to navigate this transformation effectively. The benefits of AI span diverse fields—from accelerating medical research to optimizing energy systems and improving transportation networks. Ultimately, developing the necessary digital infrastructure in a sustainable and timely manner is essential for the global economy to unlock the full potential of AI.

As a dedicated development partner, NDC-GARBE is committed to supporting the AI-driven transformation of data center infrastructure. With expertise in data center development-as-a-service, we guide clients through every phase of the process—from site selection and planning to design and construction—ensuring a pre-development phase that minimizes risk and maximizes efficiency.

Need professional support for your data center project in the age of AI? Contact the NDC-GARBE team today.

Author: Dominic Lees, Managing Director and Chief Development Officer at NDC-GARBE