Data center demand continues to drive construction

By Heidi J. Ellsworth.

DeepSeek announcements drive speculation.

The demand for data centers continues to grow and with the emergence and recent announcements concerning DeepSeek, a Chinese AI company claiming to offer substantial efficiency gains at a lower cost, changes in how data centers are being constructed are very much in the forefront. In a recent article from FMI, they raise concerns about potential shifts in data center construction and capital expenditures (CapEx). In visiting with Paul Trombitas, a partner with FMI Consulting, this is an area that is gaining intense interest including research by the experts at FMI. 

According to FMI, while some anticipated a reduction in spending, interviews with 26 industry experts revealed that most expect the demand for data centers to remain robust. The consensus is that AI innovations, including DeepSeek’s, will not reduce the need for infrastructure but could lead to greater efficiency, potentially increasing AI workloads and, in turn, driving further data center investment. 

Despite skepticism about DeepSeek's efficiency claims, experts agree that AI's rising demand will likely push CapEx growth. Investors are scrutinizing spending, particularly for large-scale projects, but data center projects are expected to move forward, with a focus on infrastructure optimization rather than unchecked expansion. This means growth for metal in the building envelope, roofing and overall long-term maintenance. As AI models become more complex, the emphasis will shift towards improving energy efficiency, particularly in cooling and power distribution. All of this could also affect the structural and accessibility needs of the roof. 

In the long term, infrastructure improvements such as liquid cooling systems and localized solutions are expected to play a critical role in meeting the rising energy demands of data centers. Even though AI efficiencies may help reduce some costs, power and cooling challenges are seen as the primary bottleneck to growth according to FMI’s reporting. 

For the full story visit FMI — https://fmicorp.com/insights/quick-reads/will-deepseek-change-data-center-construction-plans