Data Center Development

Data Center Development: The Growing Importance of Data Centers in the World’s Economy

With technology continuing to rapidly evolve, the systems that support it have become an increasingly essential part of our daily lives. Data Center Development is critical. Immense amounts of information are created every second from daily tasks. Whether that is through connecting with family on Facebook, posting videos and pictures on sites like TikTok or Instagram, or using tools like artificial intelligence. This digital information must be stored somewhere, and that’s where data centers come in. Most well-known as computer rooms, server rooms, machine rooms, and digital warehouses, these are buildings where various amounts of computing machines and hardware equipment are located. Usually used by large organizations, the main goal is to be able to store, process, and distribute all digital data.[1]  These digital warehouses and data centers serve as a backbone of our world economy, where everything we do online relies on data centers running smoothly.

Local Impact of Data Centers

Data centers not only keep the world around us connected and productive, but are also able to support a wide range of industries and professions. Volico highlights how prominent industries including healthcare, retail, financial services, and telecommunications use data centers to support their daily operations. With industries such as healthcare having to generate “significant amounts of data over the past few years,” it makes data centers crucial in managing this information.[2] Beyond this, data centers boost local economic development opportunities that lend to the advantage of local jobs seekers. Supporting local economies, these large infrastructure projects are supportive of industries with cloud operation, computer science, systems, facilities, electrical engineers, network engineers and IT services, and cyber security professionals, as they play a role in keeping these facilities operational.^[3] This job creation also helps boost local economies by attracting new businesses. It also provides operational support services that build and maintain these data services. Local contractors are ready to construct and build these data warehouses that experienced architects and engineers carefully plan.

Artificial Intelligence Depends on Data Centers

The digital world continues to evolve, and with this evolution, the demand for artificial intelligence (AI) has increased rapidly. AI itself isn’t new, but it has become more mainstream as both the public and businesses find themselves using it in a variety of ways.[4] Training and running AI applications require a vast amount of computing power and storage—resources that data centers are equipped to provide.[5] Data centers have the capability of managing data with vast amounts of storage, ensuring reliable processing capabilities. These aspects make data centers essential, as they provide the support AI technologies require to properly run. In turn, businesses and individuals can benefit from these AI-powered applications by boosting efficiency and productivity. As a result, communities that are supporting these equipment rooms have the capability to make the economy thrive due to local competition and job growth.

Data Center Development: Nevada’s Rise as a Data Center Hub

Through the continuous evolution of technology—such as the demand for it—it is important to acknowledge the importance of data center development. As the digital world continues to evolve, states in the US will continue to construct these data centers to stay within pace. Nevada, for example, will become one of the backbones where these centers are stationed. With a total of approximately thirty data centers in Las Vegas currently, listed by DataCenters.com, it houses companies such as: Novva, Switch, Google, Flexential, and more.[6]

But there are valid concerns in the Nevada heat. Ongoing conversations about water shortages, alternate cooling methods and the future needs of data centers are top concerns, especially in our Southern Nevada desert climate. Northern Nevada, seemingly may be more of a desirable target location.

Tax Abatements of Data Centers in Nevada

With Nevada’s low risk of natural disasters and pro-business environments compared to other states. Such as tax abatements (the reduction of taxes), brings a new wave of upcoming data centers to Nevada.[7] According to the Governor’s Office of Economic Development (GOED), Nevada offers partial tax abatements to data centers that meet specific criteria.[8] Such as having a business in Nevada for 10 years and having 50% or more workers being Nevada residents that engaged in constructing the data center. With these appealing tax incentives and data center abatements it drives the rise of these data warehouses. Moreover, having extensive growth in sectors such as entertainment, gaming, and fintech, it is crucial to have more data centers located in Nevada. But it needs to be strategic.

Risks Facing Data Centers

As data centers become more integral, acknowledging the risks are essential. As these risks can disrupt data centers, making them unsecure. Whether those threats are external or internal, common threats such as cyberattacks, fires, power outages, etc. these circumstances pose serious challenges to a data center’s reliability and security.[9] Additionally, environmental dangers in states such as Nevada’s extreme heat and droughts are important to keep in mind. Without the proper planning or design, data centers can lead to safety risks. From equipment failure, data loss, or extended service outages, this can impact the economy negatively, harming society. Which is why it is crucial to implement environmental and technological safeguards as data centers continue to grow, with a strategic development plan for electrical loads and proper calculations, and mechanical cooling systems. Through implementing safeguards, it ensures that these facilities are secure and stable. Supporting the digital infrastructure our society and economy rely on.

Data Centers Are the Backbone of Our Communities

These challenges, however, should not deter us from investing and supporting data centers. Highlighting these risks only further emphasizes the importance of designing and building more secure and resilient facilities that can safely store our data. As these data centers are not just warehouses that store information, but a digital infrastructure that keeps our lives connected. Having the right team in place is integral. These machine rooms will continue to power everything—from AI to entertainment. Such as the important gaming industry in Las Vegas. This allows various businesses to run and innovate. Having the ability to allow individuals to communicate worldwide and grow business at the speed of AI bots. Particularly in Nevada, it will play a vital role in helping the economy thrive in communities in the continuous evolution of the digital age.

Trust SCA Design with Your Next Data Center Build

It is important to have a skilled architect and engineering team in place for your next new data center build. As your data center architect, we will construct a team of qualified architects and engineers, low voltage, and IT specialists to design your data center and building infrastructure to keep these server rooms cool and operational, integrating security measures and energy effectiveness into these newly designed and constructed spaces.

[1] https://aws.amazon.com/what-is/data-center/

[2] https://www.volico.com/industries-that-could-benefit-the-most-from-global-data-center-growth

[3] https://cc-techgroup.com/do-data-centers-create-jobs/

[4] https://www.naiop.org/research-and-publications/magazine/2023/winter-2023-2024/development-ownership/data-center-real-estate-challenges-and-opportunities-in-the-digital-age/

[5] https://www.digitalrealty.com/resources/articles/data-center-ai

[6] https://www.datacenters.com/locations/united-states/nevada

[7] https://www.novva.com/data-center-facilities/las-vegas/

[8] https://goed.nv.gov/incentives/

[9] https://www.ey.com/en_us/data-centers/data-center-security-internal-and-external-risks

Comprehensive Architectural Services

At SCA Design, we offer a full range of architectural and design services, including:

Commercial architecture – Office buildings, retail spaces, land development, urban infill
Multi-Family architecture – Affordable housing, worker housing, apartment housing, community centers
Residential architecture – Custom luxury homes and high-end residential projects, Casita Accessory Dwelling Unit (ADU)
Retail architecture – Ground-up, freestanding, gray shell and second generation
Casino & Hospitality design – Casinos, entertainment venues, and sports facilities
Restaurant design– Restaurant architecture, QSR, food court and coffee shop design
Warehouse architecture – Industrial, Manufacturing, and Warehouse Office
Interior Design – Thoughtful model home design, stunning interiors, space planning, blending aesthetics with functionality, inclusivity, tailored experiences, and technology.
>Tenant improvements & renovations – Enhancing and repurposing existing spaces, façade, adaptive reuse
Master Planning & Entitlements – Concept design, programming, site evaluation, zoning variance, rezoning, special permitting and approvals, design review with AHJ
Self-certified Architect & Quick permit – CD Permit Set alternative to Building Department building plan review for code compliance*
Construction Services- Project management, construction management, bid and permit support.

We specialize in design-build, design-assist, and ground-up architectural design. Our firm also integrates ADA accessibility, LEED-certified sustainability, and green energy solutions to meet modern green building standards.

Start Your Project with SCA Design

Looking for experienced licensed architects in Nevada, Arizona, Utah, and Idaho? Let us bring your vision to life! Read more about the process here. Schedule a free consultation with our expert architects today! Call SCA Design at 702-719-2020.

About the Author

My name is Gabby Bazan, I am a summer intern at SCA Design. Through the Clark County Summer Business Institute. As part of my internship, I have had the opportunity to research and develop website blogs informing potential clients about architecture-related topics. This process has strengthened my ability to create engaging content that resonates across multi-generations. Throughout the summer, I also contributed to Instagram content creation and gathered quality information to deliver thorough informative content for readers. This experience has helped me deepen my knowledge about marketing, while also providing me with valuable insight into working in a professional environment. I worked while reporting to Ms. Nickel Lowman, Regional Marketing & Business Development Manager of SCA Design, an experienced team member with the architecture firm. For questions regarding content and data center capabilities, ask for Nickel Lowman.