The development of artificial intelligence and the use of social media, streaming services and other technology is driving unprecedented demand for data centres. Building new data centres is impeded by a lack of viable land in primary data centre markets, a constrained power grid, supply chain delays and labour constraints. A heightened focus on sustainability adds another layer of complexity. To address these challenges and meet immediate and future demand, data centre providers need to modernise their growth strategies.
QTS’s approach to procurement integrates strategic investments in land, large-scale power and critical equipment – as well as access to carbon-free energy – to address both immediate and future infrastructure needs for customers. Leveraging this approach, we have created a roadmap to introduce more than 35 new facilities with more than 3,800 megawatts by 2028.
Planning for future demand
Land availability has become increasingly limited due to difficult-to-secure entitlements and new government regulations that limit new data centre development to preserve land for other uses. With primary data centre markets oversaturated, data centre providers are moving outside of traditional locales to areas with ample land, rich connectivity and carbon-free energy sources. This shift positions data centres to scale to meet future demand and satisfy hyperscalers’ preference for large-scale data centre campuses.
Data centre providers are moving outside of traditional locales to areas with ample land
QTS’s land-banking strategy evaluates multiple future sites well in advance to enable mega campuses that maximise the number of onsite facilities, minimising community impact and offering options for long-range customer deployments. The transition to large campuses also delivers economic benefits and helps solve labour constraints by providing predictable, long-term projects for construction partners.
Accessing power amid a restricted power grid is another obstacle. Utilities are struggling to keep pace with demand, lengthening power procurement timelines. Data centre providers with contracted power capacity at scale are better able to support incremental demand from key hyperscale tenants.
Access to infrastructure
QTS implements long-term power provider partnerships and utility agreements years before commissioning. QTS also works closely with utility companies to identify innovative and sustainable ways to generate and secure power that best serve our customers, the community and the environment.
QTS has signed long-term contracts for solar- and wind-generated energy in multiple states, including Texas, Illinois, New Jersey and Georgia. We also advocate for more cost-effective renewables pricing. In partnership with the Clean Energy Buyers Alliance (CEBA), we strive to unlock the marketplace for all non-residential energy buyers and transition to a zero-carbon energy future.
To address equipment and infrastructure delivery timelines, which have more than doubled in the past two years, QTS pre-positions standardised equipment more than 24 months in advance, securing a long-term growth roadmap. This advanced purchasing model is reinforced by our Freedom Standard Data Centre Design, which standardises every element of the data centre. Utilising consistent equipment across facilities allows us to lean in and buy hundreds of megawatts worth of equipment to alleviate supply chain delays.
Sustainable initiatives and conservation
As data centres adapt their expansion strategies, sustainability and energy efficiency remain focal points. QTS is an industry leader in sustainability and data centre efficiency. We support policy change and integrate a variety of energy-efficient practices and solutions into our facilities, including energy-efficient cooling, Energy Star appliances, LED lighting and occupancy sensors.
To create a more sustainable future, we developed the QTS Freedom Design, a best-in-class standardised data centre model implemented across all our new data centres. The design employs a low-pressure pumped refrigerant system to remove heat without consuming water. By eliminating the use of water to cool data centres, the Freedom Design system saves more than 48 million gallons of water annually per data centre – the equivalent of water use from more than 2,200 US homes per year. Because the cooling system does not consume water, QTS Freedom Design data centres deliver a water usage effectiveness (WUE) of zero. WUE is the most relevant metric for measuring water use and conservation in the data centre industry. All new data centre builds will continue to use this water-free cooling system to improve water conservation in every community in which we operate. To conserve water in legacy facilities, QTS employs additional water-saving and reuse practices, including rooftop rainwater collection systems and reclaimed water programmes.
Data centres with innovative solutions will be prepared to address market trends
QTS’s water conservation efforts extend beyond our data centre operations. We partner with World Vision, a world leader in humanitarian efforts, to provide clean water to in-need individuals and communities across the globe. Through our Water Fund programme, QTS supplies clean drinking water to three people for every 100kW of customer contracted power, continuing the donation for the life of each contract. For larger, 12+MW contracts, QTS finances the construction of a sustained clean water source, such as a well or water point, for the duration of each contract, providing an entire community with a long-term supply of clean water. To date, QTS has subsidised 23 water points, supporting over 65,000 individuals, including those in the region of Makusa B, Zambia, in September 2024.
A community focus
QTS is committed to economic development that provides meaningful return on investment for the communities we call home. That includes creating construction, manufacturing and technology jobs, fostering economic growth through tax revenues, working with local suppliers, and operating as trusted neighbours and responsible stewards of the environment and community resources.
Data centres generate hundreds of millions of dollars in tax revenue for local communities. This revenue goes to advancing community initiatives while significantly reducing the tax burden on residents. To enhance our communities, we implement plans to preserve, improve and create public amenities; provide workforce development programmes, training and job opportunities; and protect the natural environment and its wildlife.
As widespread digitalisation increases data centre demand, data centres with innovative solutions will be prepared to address market trends and guide strategic investments to remain ahead of the curve. QTS is at the forefront of digital transformation with a forward-leaning plan that integrates mega data centre campuses, large-scale power procurement and aggressive purchasing timelines to support global connectivity and hyperscaler expectations, sustainably.
