CyrusOne is a global leader in the development and operation of sustainable, scalable, high-availability and flexible data center solutions.
Why did you decide at this point in your career that the opportunity at CyrusOne was the right one for you?
I have been in the data center industry for quite some time, including 16 years with Equinix, where I witnessed substantial growth and transformation, particularly in Europe. The opportunity with CyrusOne intrigued me because it combined several elements I’m passionate about. The industry continues to expand rapidly, with an increasing need for capacity delivered on tighter timelines, creating logistical and financial challenges. My background aligns well with these needs, particularly in building relationships with large clients and managing substantial capital requirements.
When I spoke with KKR and Global Infrastructure Partners (GIP) after they took CyrusOne private, I resonated with their vision for the company's future. It was clear they were bringing significant capabilities beyond the initial investment, offering a chance for me to step into the CEO role and handle the leadership challenges that come with it. Additionally, this role allowed me to return to Dallas, which I love. It's been two years now, and while we've made progress, the pace continues to accelerate.
There’s a lot of talk about overcapacity in data centers. Do you see that as a real risk?
I don’t entirely agree with the notion of overcapacity. The volumes have undoubtedly grown larger than what the industry has seen in the past, but the demand for this capacity is growing at a comparable rate. The balance between supply and demand remains tight across the U.S., UK, Europe, and Asia. So, while the scale is increasing, it doesn’t necessarily mean we’re approaching oversupply.
The data center market remains dynamic, and demand absorption has been strong. There are certainly new challenges, especially around sourcing capital and building infrastructure, but I believe that demand will continue to match, if not outpace, supply in the foreseeable future.
Are there any specific regions where you are planning new data center hubs?
Our development strategy centers on suburban locations close to major metropolitan areas, particularly in the U.S., Europe, and now Asia. For example, we recently broke ground in Osaka, Japan, as part of our expansion into the Asia-Pacific region. In the U.S., we target cities like Northern Virginia, Phoenix, Dallas, and Chicago, while in Europe, we’re focusing on established hubs such as London, Frankfurt, Amsterdam, and Paris, with new expansions in Madrid, Milan, and Dublin. These metropolitan hubs are critical for us as they enable us to maintain proximity to major clients while keeping operational costs manageable. Our focus is on areas where our infrastructure and execution capabilities provide a competitive advantage, rather than trying to be present everywhere.
What steps are you taking to address environmental concerns, particularly around cooling and water usage?
We are deeply committed to sustainability, with a focus on advancing our cooling technologies to reduce power and water consumption. Efficient cooling is essential not only for resource conservation but also to ensure optimal equipment performance, given the increasingly demanding requirements of today’s technology. Our approach involves a blend of incremental improvements in efficiency and investment in next-generation cooling systems. A notable initiative we’ve undertaken is our commitment to closed-loop cooling systems, which circulate water within the facility to transfer heat without evaporating it. This approach drastically minimizes our water footprint, a critical factor in regions like Phoenix, Arizona. This system allows us to manage our water resources responsibly while still achieving the high-efficiency cooling necessary for our data centers.
What are some of the challenges keeping you up at night in this rapidly growing industry?
One major focus is the interplay between data centers and the electrical grid. Historically, the data center industry operated somewhat independently of the power sector, but as our energy needs grow, we need to collaborate more closely with utility providers to ensure alignment with grid infrastructure and development. I spend a lot of time working with my team on how we can address this mutual challenge for both power and data center industries.
Another challenge is talent acquisition. The rapid growth of the data center industry has intensified competition for skilled technical and engineering talent. We are focused on attracting the right people and creating opportunities for career advancement to ensure that we have the expertise to support our growth. Additionally, staying abreast of technological advancements like artificial intelligence means working closely with clients to anticipate their evolving needs, so we remain relevant as these technologies evolve.
Given the increasing resource demands of AI, do you think the data center industry’s growth will eventually become unsustainable?
I believe necessity will drive innovation, especially around sustainability. Data centers have already made significant strides in energy efficiency over the last 15 years, and I expect continued advancements. Both small improvements and major innovations in energy usage, cooling, and other areas will keep pushing us forward. Industry competition also drives us to continually enhance our sustainability profile to stay competitive. While the broader climate and resource challenges are complex, the progress I see within the industry gives me reason for optimism. I believe that with persistence and investment, we can address these challenges and continue to innovate in a responsible way.
What’s next for CyrusOne in terms of growth and new projects?
We are going to have continued announcements around new capital programs and groundbreaking projects in the U.S., Europe, and Japan, particularly through our partnership with Kansai Electric in Japan. These investments, each often in the hundreds of millions, will enable us to meet the high demand for data centers globally. As we look ahead, sourcing and managing capital will remain a critical part of our growth strategy. While I can’t disclose specifics until we break ground, we’re working on several large-scale projects that we hope to announce soon. The dynamic growth trajectory for us shows no signs of slowing, and we’re committed to keeping pace with the industry’s expanding needs.
