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The Trump administration has also suggested additional rates, including a new 25% rate in Taiwan semiconductors. This rate would be devastating for the US technology industry, given the centralized production of the most advanced chips in Taiwan. As the costs increase to function in the United States, multinational companies have an incentive to strengthen the data center’s capacity elsewhere.

In June 2024, TD Cowen predicted that “American data centers will represent 6.6% of all United States electricity consumption” in 2028. Their research went further, quoting vital regions of the data center that was near the power qualified by reliability. The estimates included the north of Virginia in 2027; New Albany, Ohio in summer 2028; Silicon Valley in 2034; And he said that Dallas, Texas, already exceeds his supply. According to a report of December 2024 of the United States Department of Energy, US data centers consumed 176 hours Terawatt in 2023, or 4.2% of United States electricity consumption. To say in perspective, our data centers consume more than 54% of the total energy consumed in the interior of Mexico and its 130 million citizens this year. Also significant is the growth rate of demand (Figure 2). In the last 15 years, the growth in the Demand for Electricity of the United States was almost flat at only 0.1% per annum. It is currently seen from 2% to 3% annual growth, higher in heavy data regions in the data center, these growth rates feel impressive for an ecosystem that is simply not used. (Caption ID = “Attached

2. Source: RSM US LLP, United States Energy Information Administration(/subtitle) The need for reliable power has caused many hyperscalers to explore a “behind the meter” model, where they own and operate their own power sources. Although they still need to connect to the network due to resilience against interruptions, this model offers more easier control and prediction for the future scale. The main challenge with this strategy, however, is the necessary construction time. Nuclear power plants, favored by technology companies to be reliable and have no carbon emissions, can take more than a decade to build and often face a public impulse. Renewable sources such as solar and wind, when combined with battery storage, can be a viable option to provide large amounts of online energy at a minimum of 12 to 18 months. Natural gas would be a viable source, but the longest calendar of four to five years to bring a new natural gas plant online makes this reality more difficult. Energy is not the only source of energy consumption in the data center. From 2023, McKinsey estimated that 40% of all data in the data center is going to cooling. Cooling is a central part of data center management to prevent damage, equipment failure and maintaining performance. In an industry that is expected to provide some times of 99.999% (or the equivalent of 5.25 minutes of inactivity time a year), overheating can have dire effects. By 2023, a data center in Singapore was overheated, which caused 2.5 million bank transactions to fail on two multinational banks. Water -based methods to cool chip facilities are becoming more and more popular solutions, which will have implications for local water utility capacity, expansion and efficiency.

North -American data centers have been historically affected by the main Internet exchanges that also meet the previous energy needs, while protecting themselves from the main environmental risks such as natural disasters. However, as regions such as North Virginia, Oregon, Phoenix and Dallas/Fort Worth they are saturated, developers are looking for alternative places for data centers. The state regulatory landscape is evolving, with the legislators of various states that plan and propose invoices aimed at ensuring that data centers pay their fair quota of energy bills and, in some cases, establishing goals for the use of renewable energy for customers of the data center.

It is expected that the data center’s demand will increase exponentially, turbocharged by the AI. The growth provides an opportunity for the entire ecosystem from the production of servers to sources of energy to feeding and cooling data centers. With the changing regulatory landscape, the winners in the United States are likely to be those with less exposure to foreign supply chains. Agility will also be important as AI continues to evolve to a fast clip and remodel the wider data center ecosystem. Organizations can take numerous routes to prepare for this growth. These may include evaluating scale skills, understanding the impact of the interest rate environment on future plans, identifying potential alternative suppliers and taking advantage of incentive programs that can withstand growth. –Andrew FeDele is a director in RSM US Llp’s Practice transactions advice services. David Carter He is the director of the practice of risk consulting and the risk of privacy of RSMs you LLP. Mac Carroll He is a superior manager of tax services at RSM US LLP.