The Atlanta Formula
Hosted by Zettler Clay, this show explores the city's rich culture, history and vibrant energy of the people.
The Atlanta Formula
8. Variable Edition - Generative A.I. and the Kids
If you scroll on Amazon or on social media, you are using the help of a data center, and Atlanta, my friends, is the center of it all. In fact, if all of Atlanta's under construction space delivered tomorrow, it will become this continent's second largest data center market.
Speaker 2:We'll be right back. What number is your police precinct? Yeah, tell you just how we speak, where you from. What number is your police precinct?
Speaker 1:Welcome back to the show, everybody. This is Zetla Clay IV of the Atlanta Formula. Today we're diving into a topic that's transforming cities across the globe the rise of data centers. We're talking about data and we're focusing on one city in particular that's becoming a major player in this digital revolution. Guess what? It's the name of the show? We go look at the math behind things. We go track some noise behind some information surrounding data centers. We go vibe it out by highlighting a particular group of people, a person, an organization that's doing things in this space that we should be looking at and admiring and supporting and seeking emulate whatever inspires you. And then we go get into dividing and conquering how we can figure out a way to make this work for us and get some paper in our pockets, yeah. So first let's get into it, the math. So first let's get into it the math. 211%, 211%. That's the eye-popping delta that's happened in the uptick of data centers between 2022 and 2023. I know it's 2024 right now and guess what? It hasn't slown down. It's only exponentially proliferated data, data, data, data, rocking everywhere.
Speaker 1:Here's more math behind atlanta's data boom. We're talking about explosive growth, with a 76 percent year-over-year increase in data center development. That's not just a steady incline. That's a step change in scale, a leap that's reshaping the entire region. The the power at play here is astonishing. In 2019, atlanta had just 142.6 megawatts of data center capacity. Fast forward to now and it's ballooned to 1.3 gigawatts under development a nine times increase in only five years.
Speaker 1:Atlanta has risen to become the sixth largest data center market in the US. It's not slowing down. Atlanta is now competing with tech giants in major markets across the country. The city is emerging as a key player in the digital infrastructure landscape, with demand showing no signs of slowage. Just look at the absorption rate. In 2022, atlanta's data centers absorbed 97 megawatts, but by just the first half of 2023, it was already at 120 megawatts. Demand is accelerating with a trajectory that's going up. It's not leveling, it's going up steeply. Trajectory that's going up. It's not leveling, it's going up steeply.
Speaker 1:Historically, atlanta's absorbed 8-10 megawatts annually, a modest number compared to today's level. In recent years, that number has surged to 20-40 megawatts. Last year's 97 megawatts wasn't just impressive. It marked a paradigm shift. Future projections are equally staggering.
Speaker 1:Atlanta's data center market is set to grow at a compound annual growth rate of 21.83%, from 24 this year to 29, reaching an astounding 1.42 thousand gigawatts in five years. This isn't merely growth. It is a compounding opportunity that's drawing investors' eyes from all over. Investor sentiment is sky high as well, with nearly half 49% specifically of investors in the 2024 Global Data Center Investor Intention Survey ranking Atlanta as a top investment market. It's not just about seeing numbers. It's about seeing confidence and betting on this city's future. The market is more than hungry for capacity, with almost 80% of North America's 3.87 gigawatts of new capacity already pre-leased, and Atlanta is uniquely positioned with market diversity. It's one of the few areas that covers every type of data center use, from network-centric to hyperscale, ai, training and cloud services. We'll talk more about cloud services later in the episode.
Speaker 1:This diversity makes Atlanta more than just a tech hub. It's a thriving ecosystem of digital infrastructure. The economic impact is undeniable A single data center building could be worth up to four billion dollars in development, transforming local economies in a way that few industries can. This boom isn't just about the giants. It's about creating opportunities that ripple out to communities and businesses and individuals alike. So why does this data boom matter to the broader society? For starters, data centers provide the processing power that enables advancements in healthcare, supporting faster development in genomics, personalized medicine and even AI-driven health insights. With strong data infrastructure, telemedicine becomes more accessible, helping bridge gaps for underserved communities and rural areas. In terms of job creation, the data boom is a powerhouse for economic development. Skilled jobs engineering, it facility management are cropping up, offering high-paying positions that boost the local economy. We'll talk about that more in the episode later in the episode.
Speaker 1:Environmentally, the stakes are high, but so is the potential. Many data centers are adopting green tech, incorporating renewable energy sources like solar and wind, and focusing on energy efficiency. With these large energy demands, these centers are spurring innovations. Environmentally, the stakes are high, but so is the potential. Many data centers are adopting green tech, incorporating renewable energy sources like solar and wind and focusing on energy efficiency. With large energy demands, these sensors are spurring innovations in cooling and power management that could benefit other industries, contributing to broader environmental sustainability. Necessity is the mother of invention, right? Educationally, the benefits are tangible Data centers enable robust online learning platforms and digital literacy programs, making education more accessible to a broader demographic. They also support universities and research institutions, providing resources for data-intensive studies that drive innovation in various scientific fields.
Speaker 1:But there are questions we still need to ask how do we make sure this growth benefits everyone and not just the tech giants? How can we balance economic gains with environmental sustainability as we manage these increasing power demands? And as we continue exploring, we'll need to ask tough questions about data privacy, who's collecting them and for what purpose, the social impact and the role of tech companies in shaping the culture of this beautiful city that we love. Perhaps I'll do a variable episode where we dig into these questions, unpacking the complex interplay of opportunity and responsibility, because if this data boom is transforming Atlanta today and it is we need to be clear about the future we're building for tomorrow. So we talked about the math surrounding the data server, data center boom in atlanta, but now I want to talk about some things that we got to clear up in regards to what is a data server, what is a data center and why is atlanta right now poised for it. We talked about specific reasons, but I want to highlight a story that is huge into what's going on right now. So there was one man who came to affect Atlanta in a similar but lesser degree than our boy, ted Turner, that we talked about in the last episode. If you have not heard that episode, yet do so, but not yet. Stick with me for a moment.
Speaker 1:Data servers have come a long way, transforming from clunky on-site machines to the sleek, powerful cloud infrastructure we rely on today. Back in the day, companies had to sell their own massive, costly data centers, each one guzzling energy like an old car guzzles gas. But then came the shift to the cloud, making data storage more accessible, efficient and manageable for everyone, from startups to enterprises. One man in particular saw our vision and took action Around 30 years ago this time Jeff Preston Bezos, a man out of Albuquerque, new Mexico, with a former Microsoft headquarters located and also Walter White's stomping grounds. He decided to leave his Wall Street analyst position in New York to dart across the nation to land in a spot near Seattle to create and build an online bookstore. He quickly made it into a powerhouse that is dominating the market. This company is called Amazon Amazon. He officially incorporated the company in 1995, but it wasn't until 2006 when he founded Amazon Web Services. This is key, because this solved Amazon's own scaling issues and offered other businesses of Lifeline. That sent that company into a stratosphere in which it has not come down from. No longer would companies need their own data centers. They could simply rent Amazon's cloud power and scale as they grew.
Speaker 1:This single move didn't just change Amazon. It changed the entire landscape of business technology, opening doors for countless new ventures to thrive. Opening doors for countless new ventures to thrive. Aws quickly became a game changer, giving companies flexible, scalable access to vast computing resources without huge upfront costs. Some startups could dream big, paying for only what they needed, while established companies gained agility that they had not seen before. From Netflix to NASA, organizations across the board lead on AWS, amazon Web Services, sparking waves of innovation and growth across the tech sector. In the book the Code, silicon Valley and the Remaking of America, brilliantly written by Margaret O'Mara, she writes about this End quote AWS provided the back-end support for some of the biggest new consumer companies of the century's second decade, so you can say that AWS was the Gucci Mane of software engineering.
Speaker 1:Bezos didn't stop with the storage and processing power. Aws soon offered new data analytics, machine learning and AI services, breaking down even more barriers for companies. Every new service unlocked another level of potential, putting cutting-edge tech in the hands of those who might never have had it otherwise. Aws became Amazon's hidden giant, driving a massive share of Amazon's profits while quietly powering the digital economy from behind the scenes. But Bezos knew it wasn't just about technology. Location mattered too. He spotted Atlanta as a perfect operations hub, a city with prime logistics, major transportation routes and a young, hungry tech force ready to dive. In Atlanta already, an economic powerhouse became a vital node in Amazon's network, delivering faster and more efficiently to customers across the region of the Southeast. If you were to write one of his memos to the world about Amazon and Atlanta's relationship, it would probably read like this To the Atlanta Formula From Jeff Bezos. Subject Atlanta, our southeastern stronghold.
Speaker 1:I've been reflecting on our progress in Atlanta and Georgia. It's time we recognize this region not just as a market, but as a critical pillar of Amazon's future. Here's why. Number one economic powerhouse We've injected $20.1 billion in Georgia's GDP. This is not just a number. It is a testament to our ability to transform economies. We've created 34,000 direct jobs and supported 44,700 indirect jobs. This isn't just about growth. This is ecosystem building. Number two land of opportunity 430 acres in Covington, georgia. 118 acres in Douglas County. This isn't just real estate. It's our canvas for innovation. We're not just buying land. We are securing our future in the fastest growing data center market in the country.
Speaker 1:Number three infrastructure investment 18.5 billion dollars since 2010. 22 fulfillment centers, 10 delivery stations, 12 whole food locations. We're not just present in Georgia, we're woven into its fabric. Number four tech talent frontier. Our Atlanta Tech Hub isn't just another office, it's our beachhead for attracting a thousand plus of the brightest minds in tech. This is how we stay ahead in the AI race.
Speaker 1:Number five sustainability leadership Eight solar farms across Georgia. We're not just talking about renewable energy, we're making it happen. Number six content creation hub. Amazon, mgm Studios filming the Underground Railroad and Swarm in Georgia. We're not just distributing content, we're creating it where the talent is. And number seven and finally, disaster readiness. Our expanded global disaster relief hub in Atlanta isn't just a warehouse, it's our commitment to being there when it matters most. We are also dedicated to providing tons of green space, millions of dollars of green space in Atlanta to continue to check off this sustainability box.
Speaker 1:So here's the question we have going forward how do we leverage this foundation to make Atlanta continue to make Atlanta our South Asian stronghold, and how do we use our presence here to revolutionize everything from AWS to last mile delivery? Remember it's still day one in Atlanta. Let's make every day count Signed. Make every day count Signed off Jeff Bezos. Through AWS and Atlanta, bezos has left a legacy that goes far beyond e-commerce for delivery speeds. It fundamentally changed how we think about data and digital infrastructure. The evolution of data servers from isolated, isolated, costly machines to cloud-based powerhouses has reshaped entire industries and brought technology to the masses. And with sensors like Atlanta, that future keeps building, delivering not just goods but a new way of living and working in the digital age.
Speaker 3:Enjoying the podcast. Well, stay tuned for more. Check out more content by visiting our website, TheAtlantaFormulacom. That's T-H-E-A-T-L-A-N-T-A-F-O-R-M-L-Acom. Follow us on social media at TheAtlantaFormula on Instagram and at AtlantaFormula on X. Now let's get back to the show.
Speaker 1:All right y'all, before we get into some ways, we can make some real wealth with this data center boom in Atlanta. I want to vibe it out for a second and talk about STEM wars, where classrooms become high-tech learning zones for people everywhere. Stem wars is a one-day hands-on experience that electrifies any classroom space, auditorium, outdoor space and turns it into a cutting-edge science and technology hub. Imagine lessons that come alive with interactive tools such as virtual reality, drones, coding, robotics, live animals, gardening, music production, rocket launching stations all providing instant student feedback and activities so engaging that students barely notice the time is rolling. I went to one of these STEM Wars events earlier in the year at States Farm Arena and I must tell you it was incredibly inspiring. I took my kids there, got them out of school early and we went there, and I'll tell you what it's worth any early dismissal. Them out of school early and we went there, and I'll tell you what it's worth any early dismissal. I worked with this group last year to bring it to my school, where I run the STEM program, and it was amazing.
Speaker 1:Stem wars does not miss and as we talk about this oncoming wave of opportunities, it's imperative that we think about the youngest among us to prepare them. I read recently something like 60% of the jobs that will exist by the time our elementary students of working age are not even created yet. So go check out STEM Wars y'all. It's a fully immersive experience, giving audio-visual presentations that make learning irresistible, gives endless curriculum options, from elementary to middle to high school, even college. Every student level gets tailor-made dynamic lessons in the STEM or STEAM space, packed with academic competitions, robotics and drone demos, app design challenges and workshops led by industry leaders. Stem Wars is more than an event. It is a STEAM revolution. Stem Wars brings world-class, technology-rich education right to your doorstep, with no costly renovation or high-tech labs required. Education right to your doorstep, with no costly renovation or high-tech labs required, just pure plug-and-play power that transforms students into the workforce of tomorrow. So go STEMWarsorg. Contact Troy Curry. He's a part of the wave. He's leading the wave of delivering our students right into economics doorsteps, our students right into economics doorsteps. Stem Wars, turnkey innovation for world-class results.
Speaker 1:All right, y'all, I'm back and I just got through making clear some math and some tracking, some noise about this, and I now want to go into. I like to highlight some things that we can do to advantageously adapt. So we're in a place in the city that is giving tax incentives to attract data centers tax breaks, job creation credits, streamlined regulations the latter meaning that tax breaks, job creation credits, streamlined regulations, the latter meaning that it shouldn't be hard to sustain operations once it gets going. The one right before that, job creation credits that's what I want to kind of talk about. Right now, the government is pro-business, especially in Georgia. There's no getting around it, and that's not a bad thing. It's not a bad thing Because with all this is going to come a skilled workforce. Atlanta is home to Tech Emory, clark, Spelman, morehouse, georgia State, many other colleges, no-transcript.
Speaker 1:Needless to say, the tech sector here is white hot and a skilled workforce is the backbone of that growth. There's innovation. Some data centers are leading the charge with recycled water systems, green roofs and AI driven cooling. Others are switching to backup power from renewable sources like fuel cells instead of diesel. Renewable sources like fuel cells instead of diesel. Sustainability is the top of the mind in a lot of these sectors, especially in a place like this, as communities and companies are going to look for a balance between growing and environmental impact. So this tech hub has its own unique culture strong focus on security, sustainability, investments in green energy, data privacy these folks are coming through Now here. Investments and green energy, data privacy these folks are coming through Now, here, now about to drop the playbook. This is where we divide and conquer.
Speaker 1:All right, we're going to talk about how you, I, we can cash in on this gold rush. These giant digital warehouses are popping up everywhere y'all. We can't stop it and there's serious money to be made, so let's dive in. First, real estate Commercial property near data centers is hot. Buy some land, buy industrial spaces. These places are going to need logistics, maintenance, support services, or think rentals.
Speaker 1:Data centers bring tech workers, engineers, it pros. They need places to stay. Invest in residential properties nearby. Watch the rental income roll in. All right, my co-working spaces. All these consultants and startups need somewhere to work. Be the space provider.
Speaker 1:Next, we got contracting services. Got HVAC skills? Shout out to David Cobble, check him out. But yeah, these data centers are cooling monsters. They need high powered systems. Install and maintain. Make some bank Electrician Perfect. Data centers need massive electrical setups, generators, backup power, all that jazz. Or, if you're in security, now is your moment. These places need somebody to watch them. They need cyber security. They need physical security, high stakes, high demand, high wages.
Speaker 1:Then you got tech services. Data centers produce data Tons of it, and that data needs processing. If you're into data analytics, ai, machine learning, offer your services. Be the one analyzing the numbers. You managed IT before Cloud services. They offer cloud servicing courses online for free right now. Get your six figures Certification. They need you Maintenance server support, keeping things running smoothly, you know, and you know cybersecurity again, because the data got to stay safe. So you can contract the services, as previously said, or you can know offer consulting, or you can start your own business. It's goldmine, alright, we talked about renewable energy earlier, but solar panels, or you can start your own business. It's a goldmine, all right, we talked about renewable energy earlier, but solar panels, water management, energy efficiency you know the person who figures out how to get this water situation clean. You know there'll be a trillion there. Water services are always going to be in demand, especially in a place where it's going to need to have as most of efficient irrigation process as possible. I mean, anytime you can figure out a way to streamline electricity use, that's always going to be in demand, and that's just in general. Then you got workforce training. You know you can start a tech training program.
Speaker 1:Data centers need skilled people networking, server management, hvac, cyber security. Train the talent. You're part of the solution. Four star staffing. Data centers need people, just regular people, and they're hiring. Keep the place running servers humming. Find the talent. Place the talent, cast a check. Hiring Keep the place running Service humming. Find a talent. Place the talent, cast a check.
Speaker 1:You also have opportunity in legal and compliance consulting Privacy laws everywhere. Data privacy experts there's a spot for you here. Help these companies comply with the rules you know zoning laws, environmental regulations. These data centers need guidance. Avoid the legal myths and help them stay in line so you can get paid by building a community infrastructure, community organizers, public planners, coffee shops, gyms, co-working spaces Build what the tech workforce would need.
Speaker 1:They'll be your regulars. Got a built-in customer fan base I say fan base, but a customer of a tax base, most importantly. Or get involved in local politics, lobby for tax breaks, support initiatives that help data centers and the community. Then you know how most folks get that wealth in this. Then you know how most folks get that wealth in this country. You know, through companies, venture capital, investing startups, buying companies that support these data centers cooling solutions, security, energy efficiency. These words I'm saying 10 times throughout this whole episode, but you know repetition. I just want to put forth the fact that these 10 times throughout this whole episode, but you know repetition. I just want to put forth the fact that these things are available to make a money play.
Speaker 1:So yeah, that's it Our roadmap to cash in on Atlanta's data center boom, real estate contracting, tech services, green energy training. Real estate contracting, tech services, green energy training, legal community venture capital opportunities are everywhere, so go on, go ahead and grab your share of the present and future Right here in the city, from the ashes. Atlanta's story really shows the bigger picture of the challenges we face as technology becomes more intertwined with our lives. It's like this constant tug of war between one in progress but also needing to protect what makes a city special. See, Atlanta has this amazing culture, a rich history, strong community ties throughout, and the question is how do we add this growing tech world into the mix without losing these things? This is the question that the Atlanta formula asks. It's not just about preserving the past right, it's about making sure everyone benefits from the future. We talked about the job opportunities, but what about the people who are being left out of the digital gold rush? Because, even though this data center boom is creating jobs, are there programs to help people in Atlanta learn the skills they need to succeed in this industry? Are we making it possible for everyone to be a part of this economic growth? Are we making it possible for us? Am I making it possible for myself to be a part of this economic growth, and even beyond the money? Are these data centers making life better for the people who live here? Are they helping the community or are they creating new problems like higher housing costs or making traffic worse? Are we willing to sacrifice our data consumption Because we would get upset quickly when the internet started tripping? See how mad you get.
Speaker 1:This isn't a story, just a story about Atlanta. It's about every city that's dealing with the impact of technology, but Atlanta is serving as a massive microcosm or a micro-macrocosm. What kind of future do we want and what role do we want to play in making that future happen? It feels that we've just scratched the surface of this whole data center thing in Atlanta, and it's obvious that this is way more than just a tech story. It's about how cities are changing. It's about how stories are being told right now, about how children are being affected, and that's a whole other conversation right there. Whether it's the rise of AI, the growth of smart cities or the growing power of big tech, cities all over the world are trying to figure out how to handle this digital shift, and with that I'm going to land this plane.
Speaker 1:Shout out to Culture Collective for the brand and vision. Shout out to Maydel Ray Happy birthday, mays, I love you, keep rocking. Shout out to Wynn on the track. Madel Ray and Wynn on the track are responsible for the supersonics that you hear in this show. Go check out all of our work at theatlantaformulacom, the Atlanta Formula, on all the social media handles and y'all hey, be good to each other and, as always, do not be a hater. This is Zella the 4th. This is the Atlanta Formula.
Speaker 3:Yeah.
Speaker 1:This episode is dedicated to my childhood friend and one of the coolest sigmas the world has ever known, kyle Wilson. Rest well.
