How's Biz?

America's Surging Data Center Growth and Looming Power Crisis: How's Biz? with Kevin Goeller

Episode Summary

Kevin Goeller (pronounced Go-Ler), CCIM, SIOR and Principal with NAI KLNB in Tysons VA, is one of NAI Global’s Top 10 Producers for 2023. Some 20 years ago, Goeller began shifting his focus to the emerging niche industry of data center development, and now he is recognized as one of the foremost commercial real estate experts in the U.S. on data centers. Goeller talks about the astronomical growth of data centers, the factors driving that growth, and the dilemma of America running out of power.

Episode Notes

Kevin Goeller (pronounced Go-Ler), CCIM, SIOR and Principal with NAI KLNB in Tysons VA, is one of NAI Global’s Top 10 Producers for 2023. 

He and his team have two areas of concentration. Positioned in the Office/Industrial division of their company, the entire team is scouring for new development sites and existing industrial developments as well as buildings. As land specialists, they divide and conquer their respective disciplines. A corner perfect for a new mixed-use development is pursued by one of the team, while an appropriate industrial development site gets the attention of Kevin or one of his colleagues. Their geography centers around the Washington, D.C. suburb and is located in Northern Virginia.

However, some 20 years ago, Goeller began shifting his focus to the emerging niche industry of data center development, and now he is recognized as one of the foremost commercial real estate experts in the U.S. on data centers. 

He spearheads an effort to create and build what are frequently called data farms, or server farms, because data centers house hundreds, and sometimes thousands, of computer servers that run America’s technology. It is ironic because Goeller started out as a farmer, growing crops of food for human and animal consumption, in the farmlands and countryside near his current residence. This is where so many data centers now populate the terrain. 

We are at a critical juncture in the U.S., because there’s a lot to what’s going on right now with energy demand in this country. The 10-year run on data center development, expansion and ongoing demand for them is straining the power grid like never before. And now, the system is further complicated by the emergence of AI, and more demand on energy supplies.

“Regarding power in America:  We are out. There is not one location in the U.S. that can deliver 50 MW immediately.”

That’s a line in an email Goeller sent to NAI Global’s Industrial Council, when the group was following up on a discussion about data centers. 

This podcast delves into the growth areas of data centers, and much more. And it’s fascinating, particularly given the significance of the subject matter to our society.