Dive Temporary:
- Tech agency Intel has hit cancel on a $700 million lab challenge in Hillsboro, Oregon, amid a downturn in semiconductor chip demand, Intel spokesperson Addy Burr advised Building Dive in an e mail.
- The Santa Clara, California-based firm introduced a plan to avoid wasting about $3 billion for 2023 — and as a lot as $10 billion by the tip of 2025 — by spending cuts and rightsizing, CEO Pat Gelsinger mentioned through the agency’s third quarter earnings name in October.
- “As we speed up our technique and reply to the present demand atmosphere, we want to cut back prices and improve efficiencies by a number of initiatives,” mentioned Burr. “This consists of exploring cheaper actual property choices to proceed our information heart analysis and growth work in Oregon that’s already in progress.”
Dive Perception:
Intel deliberate to make use of the 200,000-square-foot lab facility to review revolutionary applied sciences for information facilities, particularly heating, cooling and water utilization, based on a firm press launch. The agency first launched plans to speculate greater than $700 million for the analysis and growth lab final Could.
Intel’s choice to pause development on its information heart analysis lab follows a collection of different hyperscale information heart tasks scrapped in latest months.
For instance, Meta, the father or mother firm of Fb, Instagram and WhatsApp, introduced a development pause in December for its $800 million information heart in Temple, Texas. The tech firm additionally paused its Kuna, Idaho, information heart challenge that month as properly, experiences Information Middle Dynamics.
Nonetheless, development business professionals nonetheless don’t anticipate a tech sector slowdown to have an effect on the tempo of knowledge heart development general, mentioned Richard Department, chief economist at Dodge Building Community.
That’s as a result of demand for colocation information facilities, or services that hire area to 3rd events, stays stronger than ever, mentioned Danny Horton, senior challenge supervisor of the information heart division at PCL Building’s Seattle workplace.
Horton mentioned there stays “nonetheless a whole lot of work accessible to satisfy the fixed demand we’re experiencing” and expects growth to “proceed in any respect ranges of knowledge heart development.”