Tighter US Data Center Rules May Open Expansion Opportunities in Asia, Europe
Summary
- Morgan Stanley said tighter US data center development rules could lead to additional construction of data centers with about 20 gigawatts of power capacity across Asia, Europe and Africa.
- Morgan Stanley estimated that completion of US data centers with about 5 gigawatts of capacity, originally scheduled to begin operating in 2028, would be delayed until 2029.
- The UK government is expanding grid connections to raise AI data center power capacity to 6 gigawatts by 2030, and Canada could gain an opportunity to attract investment.
Forecast Trend Report by Period
Stronger calls to tighten US data center regulations after the Democratic Party’s sweeping midterm election victories could spur more investment in data centers outside the US, including in Asia and Europe.
Morgan Stanley said in a recent report that stricter regulation of US data center development could lead to the construction of additional data centers with about 20 gigawatts of power capacity across Asia, Europe and Africa, according to India’s Economic Times on November 10. The bank also estimated that completion of about 5 gigawatts of US data centers scheduled to begin operations in 2028 would be delayed until 2029.
The shift reflects the election of Democratic governors in states including Texas, Georgia and Ohio after candidates campaigned on pledges to temporarily halt new data center development.
Europe and Canada could benefit. The UK government is pushing to expand grid connections as part of a plan to raise AI data center power capacity to 6 gigawatts by 2030. Canadian law firm Torys recently said Canada could gain an opportunity to attract investment if the US environment for data center development worsens.
Son Ju-hyung, Hankyung.com reporter handbro@hankyung.com
Korea Economic Daily
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