JSA's Fast Forward | Ghost Demand, AI Power, and the Future of Data Centers

Duration: 12:39 1830 transcript words EN summary

Video summary

The episode opens with a critical examination of the "ghost demand" phenomenon currently gripping the data center industry, particularly in Texas. Regulators and utilities are facing a significant challenge as they attempt to distinguish between speculative project requests and those that are genuinely funded and ready for construction. With requests for new power exceeding 700 gigawatts across key regions like the Midwest and South—more than ten times current usage—there is a genuine risk of overbuilding infrastructure if these projections do not materialize. This issue highlights a broader national conversation where accurate forecasting becomes just as vital as physical expansion, forcing companies to rigorously evaluate which projects represent real needs versus inflated capacity planning driven by artificial intelligence hype. Beyond the regulatory hurdles in Texas, the video showcases a series of strategic developments aimed at solving core infrastructure challenges such as power availability, network capacity, and cooling. Light Source Communications has secured a major hyperscale client for its long-haul dark fiber route connecting Tulsa and St. Louis, engineered specifically to support real-time AI processing with full underground construction expected by late 2026. Simultaneously, Isco International is enhancing wireless resilience through a partnership that integrates interference cancellation technology into ODC's RANIQ platform, while Earth is pioneering behind-the-meter solar solutions using direct ground-mounting techniques to maximize density on space-constrained sites. These innovations are complemented by upcoming industry events, including a bus tour in Atlanta showcasing various construction methodologies and a summit in Las Vegas focused on alternative solar technologies. As the industry scales up to meet AI demands, new technical and human capital risks are emerging that require immediate attention. The shift toward direct liquid cooling for high-power CPUs and GPUs introduces potential hardware risks like coolant leaks and micro-condensation, prompting Act Nano to present its advanced nanogard coating technology as a PFAS-free, thermally neutral solution for 3D circuit board coverage. Furthermore, the rapid growth of deep learning models is straining interconnect networks, raising questions about whether next-generation pluggables can maintain profitability amidst rising costs and supply chain constraints. Perhaps most critically, workforce shortages are identified as a major bottleneck; Kelly Services reports that nearly half of US projects scheduled for 2026 could face delays due to staffing issues, with national midpoint salaries for AI engineers and operations leaders reaching unprecedented levels that vary significantly by region. The episode concludes with updates on leadership changes and upcoming industry gatherings, reinforcing the dynamic nature of the digital infrastructure ecosystem. GPC Infrastructure has expanded its board and appointed a new CFO to support its growth in modular on-site power solutions designed to accelerate energization while ensuring long-term grid integration. With JSA hosting multiple events throughout September, including workshops in France and London, the industry is poised for a busy fall season filled with insights into marketing trends, capital allocation, and strategic development. As the sector navigates these complex challenges, the consensus remains that success will depend on balancing aggressive expansion with realistic project validation, technological innovation, and effective workforce management to sustain the momentum of AI growth.

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Hey everybody, welcome, welcome, welcome to JSA's Fast Forward. This is your go-to source for data center and digital infrastructure news. And we are live. That's right folks, live as in who knows what's coming out of our mouths. Uh, airing on LinkedIn and YouTube from our very own JSA TV newsroom. I am Jamie Scottaya, founder and CEO of JSA. >> And I'm Candace Cypos, EVP of business strategy and development for JSA. Welcome back everyone. Thanks for joining us again for another Fast Forward. >> All right, so Candace, before we get into this week's headlines, which there are a ton of them. We got lots of lots of things to cover, but there is one story out of Texas that is well, the entire data center industry is watching right now. We're talking ghost demand. Texas has frozen new grid connections for data centers while it audits proposed electricity demand and takes a closer look at which projects in the queue are actually likely to be built. >> Yeah, this gets to a really important issue. Uh there's no question that AI is creating enormous demand for data center capacity and power. We all know that. But what regulators are trying to understand is how much of the demand showing up in these grid cues represents real funded projects and how much may be speculative, duplicated across multiple locations or just simply not ready to move forward yet. >> Exactly. And according to Reuters, requests from very large power users, mostly data centers, now exceed 700 gawatt across portions of the Midwest, Mid-Atlantic, and South. That's more than 10 times the estimated amount of power currently being used by all US data centers. >> And that matters because utilities have to plan around these requests as we all know. So if projected demand is significantly higher than what ultimately gets built, you could be planning generation, transmission, and other infrastructure around capacity that may not ever actually materialize. >> Yeah. And that begs the question, how much power will AI need? It's also how do utilities and communities determine which data center projects are real, which are ready, and how much infrastructure actually needs to be built. >> That's right. And Texas isn't alone in trying to get more visibility into that pipeline. This is becoming a much broader conversation as data center demand grows all across the country. Definitely a headline to watch, guys, because the industry absolutely needs more power, but accurate forecasting is going to be just as important as building it, >> right? And that really sets the stage for a lot of what we've seen over the past two weeks across the industry. Companies are tackling the same core challenges from different angles. Those challenges being power availability, network capacity, cooling, workforce, and the infrastructure needed to keep AI growth moving. So, with that, that's a nice segue. Let's get into the latest digital infrastructure and data center headlines from jsa.net. Here we go guys under our new section here, deals and partnerships. First up, Light Source Communications or LSC signed a second major hypers scale client for its longhaul dark fiber route between Tulsa, Oklahoma and St. Louis, Missouri. The more than 500 mile fully underground corridor features high fiber count and eight strategically located inline amplifiers and it's engineered to connect edge environments and hypers scale clouds for real time AI processing. Engineering is nearly finished. Initial construction is underway and full completion is scheduled for the third quarter of 2027. This is LSC's third roll out this year. The company is also constructing a 400 mile network connecting Amarillo, Texas to Oklahoma City, Stillwater, and Tulsa as well as a 240 mile five ring metro build in Indianapolis. Both are anchor anchored by hypers scale tenants. >> Wow. Wow. Okay guys, over uh into wireless news. Isco International announced a strategic partnership with OAN Development Company or ODC. Isco's interference management and cancellation technology will be integrated into ODC's RANIQ platform which enables native intelligence at the radio edge. The collaboration is designed to provide real time jammer resiliency and interference mitigation improving coverage network accessibility and throughput using real-time RFIQ data from Rainic. Isco's technology support secure, resilient 5G and 6G architectures for next generation mission critical wireless networks. >> Well, great jobs. Great stuff there, Isco. Now, moving over, Metroont will sponsor the 2026 TAG Infrastructure Society data center bus tour on September 9th. We'll have a good bus tour. Uh, the Atlanta tour will visit datab bank ATL6, Vantage GA21, DC blocks ATL1B, and DC blocks ATL1A, showcasing different construction approaches and projects at varying stages of development. Kind of want a seat on that bus. >> I know. I was just thinking the Metromont team is awesome. This sounds like a party. Uh, Metro's Jennifer Topner, director of business development, will once again chair the event. Stops include pre-cast construction at datab bank ATL6 and Vantage GA21, DC blocks ATL1B, a tilt wall hypers scale facility nearing turnover, and DC blocks ATL1A, an all pre-cast facility featuring Metromont's first rooftop chiller platforms. That's really cool. Approximately 150 to 180 data center infrastructure development and construction professionals are expected to attend. Wow, that's a big tour. >> That's big. And that brings us over now to innovation and expansion. And our news here starts with power. Earth is heading to Yata September 28th through the 30th in Las Vegas where it will be talking with hyperscalers and developers about alternatives to traditional utility scale solar. >> That's right. I'll be a yada 2. We'll see there. Uh, ERTOS replaces conventional steel tracker systems with Earth mount solar, installing modules directly into the ground. So, according to the company, the approach offers up to nearly three times the density of tracker systems, creating a denser, faster to build option for behind the meter generation on space constrained sites. Earth was also recently named one of Time's top green tech companies of 2026. That's incredible. >> That's huge. All right. Love this. We should also mention Arthos is showcasing project Bravo, a 52 megawatt AC 93 megawatt DC utility scale solar project out of Metagorta County, Texas. The project is being positioned as a behind the meter blueprint for industrial power users including data centers looking at power first strategies. That's >> Bravo. Project Bravo is under construction with commercial operations scheduled for November 2026. That's really not that far from now. And is structured around a 20-year private use network PPA with a Lionel Basil chemical polymer plant. Earth will host its utility scale solar summit on September 15th offering hard hat tours, live Earth mount installation, and remarks from their CEO Jim Tyler and Project Bravo stakeholders. >> Awesome. Congratulations, Arthos. Big big news round up there. Next up, data centers. We're moving towards direct liquid cooling for high power CPUs and GPUs, coolant leaks, and micro condensation. So, we're going to introduce Yeah. new hardware risks, guys. So, in a recent episode of Advancements TV, ACT Nano showcased its advanced nanogard or AMG technology. AMG is a thin film gel state conformal coating that allows 100% 3D coverage across a circuit board including connectors. Act Nano says the coating is thermally neutral meaning it does not trap heat or sacrifice a compute performance and it's also PFAS free. Wow, that's it's pretty cool coding 3D. I like that. All right. AI is also putting new pressure on data center interconnect and transport networks. As we know, deep learning models require massive data transfers to and from data centers while operators are also facing rising costs, competitive pressures, supply chain constraints. >> That's right. And that raises the question explored in JSA's recent blog. Can next generation pluggables help network operators address growing speed and capacity demands while maintaining profitability and competitive advantage? Yeah, that's a good question. And one of the biggest constraints on data center growth may actually be the workforce. Kelly Services released its 2026 data center salary guide, reporting that 90% of data center operators identify workforce gaps as a critical risk. Yeah. Kelly says nearly half of US projects slated for 2026 delivery could face delays or cancellations because of staffing constraints. National midpoint salaries include 175,000 for AI engineers, 178,000 for data center operations leaders, 135,000 for commissioning program managers, 128,000 for construction managers, and 112 for data center technicianmemes. It's really interesting. Pay varies by 46 percentage points nationwide with Silicon Valley 34.2% above the national average and Omaha 11.8% below it. Wow. All right, guys. Finally, we're over to one of my favorite sections here, movers and shakers. GPC Infrastructure, an owner and operator of modular on-site power systems for data centers, appointed Steve Jones as chief financial officer and Fran Federman and John Jensen as independent members of its board of managers. Congrats, guys. Absolutely. So Jones brings experience building and scaling energy infrastructure companies. Fedterman brings expertise in digital infrastructure, capital allocation and strategic growth, while Jensen brings more than 35 years of leadership experience across the energy and nonprofit sectors. The appointments come as GPC continues expanding its role in on-site power through its energy as a service and development as a service solutions designed to help data center developers accelerate energization while maintaining flexibility for long-term grid integration. That's a mouthful. That is a mouthful. And that is a wrap on this edition of Fast Forward, guys. From data center power and dark fiber to cooling, workforce challenges, infrastructure supporting AI, there is certainly no shortage of news heading into a very busy fall for us. >> A very busy fall. I think JSA across the board is at five or six events just this month alone. Um, I'm personally about to head over to Platform Global in and Antib this week in the south of France where I'll be teaming up with our COO Barb Mitchell to lead a breakfast workshop on the top marketing trends shaping the digital infrastructure industry. That's uh September 9th at 8 a.m. uh local time. If you will be there at Platform with us, we would love to see you there. And then the following week, I'll be bringing JSAV to DCD Connect London, a triedand-rue event. We've we've been to many, many years in a row. We love that event. So there's definitely a lot more coming. >> Yeah. And I will be seeing you can't miss that yada at the end of the month. Um and again uh multiple multiple events uh scattered in between too. So much going on. Very busy September. Uh thank you everyone for tuning in for joining us. Be sure to follow JSA on LinkedIn and subscribe to JSA TV our YouTube channel for more news interviews and insights from across our digital infrastructure ecosystem. >> Thanks everyone. We'll see you next time. And until then, keep moving fast forward.