Should Data Centers Be Classified as Critical Infrastructure?
Last week, I had the privilege of speaking on a panel at the DatacenterDynamics conference in Ashburn, Virginia, the largest data center market globally, where we explored this question.
This topic is especially relevant as the digital infrastructure sector expands globally, with distinct opportunities and challenges across developed and emerging markets.
Our panel discussion highlighted potential benefits and trade-offs of this designation, emphasizing the importance of a balanced approach to industry growth and resilience.
Key takeaways from our panel discussion include:
--> Unlocking Benefits in Emerging Markets
Critical infrastructure status can provide priority access to resources, expedited permitting, and government support. In emerging markets, this designation could attract foreign investment and accelerate digital transformation.
--> Navigating Regulatory Trade-Offs
Increased regulation brings compliance burdens and limits flexibility. In regions with evolving frameworks, this could slow innovation and delay growth — key risks for scaling digital infrastructure.
--> Addressing Power Availability
Power reliability is a major challenge in emerging markets. Critical status may secure backup resources during crises, but broader energy investments are crucial for sustainable growth.
--> Fostering Community Engagement
Data centers can build goodwill in markets like #Kenya and #Brazil by creating jobs, supporting education, and investing in local infrastructure, aligning growth with community priorities.
--> Prioritizing Climate Resilience
With rising climate risks, investing in resilient infrastructure and disaster recovery is essential to maintaining stability and minimizing environmental impacts.
--> A Hybrid Approach to Growth
Combining government support with self-regulation in sustainability and resilience can balance innovation with oversight, supporting sustainable growth and flexibility.
A special thank you to my fellow panelists: Alessandro Lombardi, Kwasi Fraser, Matt Stansberry and Matt Welch.
A big thank you to DatacenterDynamics for hosting this insightful discussion.
As the data center industry continues to evolve, fostering a sustainable and resilient digital future will require collaboration across public and private sectors.