Constructing a full data center campus with accompanying power equipment can surpass $15 billion, according to the firms. ECP managing partner Tyler Reeder said that ECP’s experience with carbon capture will be instrumental in bringing “much needed computing capacity through a sustainable lens.”
High Demand Meets Local Challenges in Data Center Development
The KKR and ECP $50 billion investment comes amid a period of rapid growth and reassessment within the data center industry. Similar ventures have been launched this year, such as Equinix’s $15 billion partnership with a Canadian pension fund and a $5 billion joint venture involving Blue Owl Capital, Chirisa Technology Parks, and PowerHouse Data Centers.
However, not all responses to data center expansions have been favorable. In Virginia, the world’s largest data center market, local legislators and environmental groups have raised concerns about the rapid development of digital infrastructure. Although a series of bills to tighten regulations on data centers in Virginia failed to pass, a state audit scheduled for December will assess the impact of these centers on local resources.
