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locate to different markets because
they’re looking for the cheaper power.”
THE IMPORTANCE OF SITE SELECTION
When selecting sites for data centers,
particularly in New Jersey, power
availability is the most critical factor,
along with other considerations such
as fl ood plain risks, topography,
zoning, water availability, fi ber access
and permit requirements.
Christopher Hager, a managing prin-
cipal with Langan, explained the four
types of data center sites: enterprise, co-
location, hyperscale and edge facilities.
Hyperscale facilities, which are increas-
ingly being built by major cloud provid-
ers, require large
tracts of land,
often outside ma-
jor cities where
latency is less
critical. These
sites are increas-
ingly necessary
for AI process-
Christopher Hager
ing, which can
tolerate some delays due to the sheer
volume of data crunching involved.
Edge facilities, on the other hand, are
smaller centers located close to end-us-
ers, such as those using smartphones or
“There’s a big expense and big change
in design principles going on across
this industry,” he said. “And the growth
of the industry is driving some unique
dynamics in terms of labor. To do a
500-megawatt data center, on average,
you need 900 to 1,200 electricians.
How do you fi nd that type of labor?”
POWER AND INFRASTRUCTURE
CHALLENGES IN NEW JERSEY
Power remains a critical challenge
for data center development in New
Jersey. Nicole
Swan-Bennett,
PSE&G’s
director of
business
customer
solutions,
noted that most
colocation
centers in New
Jersey fall within its footprint, with a
total load of 369 megawatts.
Yet as demand continues to rise, the
Nicole Swan-Bennett
utility is rethinking how it allocates
costs and infrastructure investments
to balance the needs of data center
developers with the needs of other
customers.
“We are getting inundated with
requests,” Swan-Bennet said. “Today
we have just under 60 inquires at
various stages and they have a total
projected load of 4,500 megawatts.
That gives you a sense of the volume
and average size, which is between
10 and 400 megawatts. So, we’re
categorizing them in different phases.”
Michael Pembroke, chief operating
offi cer and principal at Russo Devel-
opment, emphasized that not every
site is suitable
for data cen-
ters, especially
in New Jersey.
Power infra-
structure must
be in place or
readily available,
and the high
Michael Pembroke
costs associated
with developing these sites can make
fi nancing diffi cult.
He highlighted the importance of
turnkey solutions, where developers
deliver fully fi tted buildings with
all mechanical and electrical
infrastructure in place, allowing
tenants to “plug and play.”
“Power is still very expensive in New
Jersey,” he said. “These other users that
could be in different markets might
other connected devices, where latency
cannot be tolerated. These facilities
are essential in delivering high-speed,
low-latency services to consumers.
While the state remains a key player,
power availability and infrastructure
will be critical factors in determining
its future growth. AI is driving new
demands for power and transforming
the design and construction of data
centers. As demand continues to grow,
New Jersey’s data center market will
need to adapt to ensure it remains
competitive in the face of these
challenges. RE
John Yocca is a freelance writer.