All In This Together: Why Accelerated Data Center Growth Is A Team Effort

The rise of data centers has been fueled by the growth of artificial intelligence, which is expected to increase power demands by 160% by 2030. Bisnow’s West Coast Data Center Investment Conference and Expo on Dec. 3 will gather the sector’s experts in San Jose to discuss this unprecedented acceleration in data center growth and the team effort that will be needed over the next several decades.

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"This event will bring together great minds to collaboratively find solutions to the challenges facing data centers rather than going at them alone," said Johnson Controls Director of Business Development and Technology Strategy Mihir Nandkeolyar.

In a conversation with Bisnow, Nandkeolyar — who is moderating a keynote fireside chat at DICE West — discussed the importance of industry leaders coming together to address the sector’s challenges, his work with managing thermal energy systems for Johnson Controls and the topics and trends top of mind for CRE.

Bisnow: How would you describe the current state of the data center industry?

Nandkeolyar: As data centers scale at unprecedented rates, the demands on our technologies are evolving just as quickly. The industry clearly recognizes increased density is the way forward for growth, leading to new challenges around access to power, land and water. Already, large data centers devote more than 30% of their energy for cooling and non-IT functions, rather than computing, representing a huge opportunity for cost savings and sustainability improvements.

We’re starting to see various entities, from power, energy and thermal vendors to real estate and private equity, coming together and figuring out better ways to solve these challenges because of the immense opportunity that AI presents for our global economy. That collaboration is driving real progress, which has been amazing to see.

Bisnow: Can you explain more about the work you're doing at Johnson Controls?

Nandkeolyar: My role has two parts. On the technology strategy side, I lead a team that focuses on ensuring our thermal management products can scale efficiently — from chip to ambient air — to manage thermal heat in an efficient and reliable manner. Our engineers prioritize scalability in every product they develop so that whether customers are building a 5-megawatt edge data center or a gigawatt campus, those same solutions can be customized in a way that is easy to manufacture, operate, service and maintain

The second part of my role is focused on business development and thinking about how Johnson Controls can engage with partners to deliver the end result that our customers want. With the large hyperscalers, neoclouds and colocators, my teams and I work to find ways our products can help customers manage power and water more efficiently.

For instance, our York YVAM chillers can cut data center energy use by up to 40% and consume zero water on site, which helps customers’ bottom lines and contributes to their sustainability goals. Our full thermal management portfolio can reduce non-IT energy usage by 50%, which boosts efficiency and helps our partners focus more on their core business strategy.

We also collaborate with partners in the power and semiconductor sectors, and even to an extent, capital spaces to support development of AI technologies that will deliver innovative solutions to tomorrow’s problems and help our economy become AI-enabled.

Bisnow: What do you think will be the hottest topics of conversation at DICE West?

Nandkeolyar: A crucial question is how we can scale with speed and consistency and what innovative solutions will make data center densification possible. In the discussion about data center builds, no one's talking about megawatts anymore; the future is gigawatts, which requires significant amounts of capital. 

One area with huge potential that I expect to hear a lot about at DICE West is managing the thermal energy data centers produce. Instead of releasing waste heat into the atmosphere, operators can capture and reuse it to power absorption chillers, which use waste heat, not electricity, as their primary energy source.

Bisnow: What do you hope attendees take away from the event?

Nandkeolyar: We know that data center densification is the next chapter in this industry, and we’re seeing significant movements in the market in terms of equipment purchases and long-term power agreements to support them. But it's up to us, as part of the community of data center construction and infrastructure leaders, to collaborate and come together to find the most efficient and sustainable way forward.

A collaborative approach is the only way that we can set up this future AI-based economy.

Click here to learn more about what to expect at Bisnow’s Dec. 3 DICE West event.

This article was produced in collaboration between Studio B and Johnson Controls. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.