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According to a report from The Information, Meta Platforms (META) is in talks to build a new $200 billion data center. Possible locations for this massive AI facility include Louisiana and Texas. Clayco CEO Anthony Johnson joins Catalysts to discuss the dynamics within the expanding data center infrastructure market.
Johnson notes that in recent years, there has been "extreme growth" in cloud computing, which created a "strong foundation" for the data center market. With the emergence of artificial intelligence, he observes that this has "added another layer of exponential growth," increasing the demand for computing power and data centers.
Regarding DeepSeek AI coming out of China, Johnson doesn't believe the emergence of this cost-effective AI model has negatively impacted the market. He explains, "I think in any business, as the technology evolves and as more competition is introduced, there's innovation. And innovation is good."
Addressing Microsoft's (MSFT) recent cancellation of all its data center leases, Johnson emphasizes that this doesn't reflect the broader demand in the sector. "To the contrary, we continue to see very strong demand in the market from various users in the space," he explains.
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Watch the full video above to hear how the efforts of Johnson's own company, Clayco, are helping to boost demand in the space.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Angel Smith