Inside DataBank’s Third Wave: Kevin Ooley on Water, Power and What Happens After the A.I. Gold Rush
Kevin Ooley, the incoming CEO of DataBank, discussed the company's growth, challenges in water and power usage, and the broader impact of the AI boom on the data center industry. He highlighted DataBank's adoption of closed-loop cooling systems and its strategy for collaborating with utilities and local communities, including the establishment of a "tech zone" in Culpeper, Virginia. Ooley also addressed ongoing community pushback and the industry's supply-demand imbalance.
Kevin Ooley, who will take over as CEO of DataBank on January 1, 2027, from Raul Martynek, detailed the company's remarkable growth from $25 million in annualized EBITDA in 2016 to an expected $1 billion run rate this year. DataBank has expanded from six data centers to approximately 65-66 facilities across 26 U.S. markets, with about ten more under development, riding the waves of corporate data center outsourcing, cloud explosion, and most recently, the AI boom. Ooley outlined the company's shift to building larger, 200-to-300-acre campuses designed for rapid expansion, often pre-leasing capacity 12-18 months in advance after securing permits and utility agreements.
Addressing civic anxieties surrounding data centers, Ooley emphasized DataBank's move from older evaporative cooling systems, which consume water, to closed-loop cooling in its larger, newer builds since 2017. He claims these modern facilities use significantly less water, comparable to only five households, aiming to counter the industry's reputational challenges despite acknowledging the lingering perception from older technologies. On power, Ooley noted rising costs but framed data center demand as an opportunity for utilities to invest in grid modernization, suggesting that demand response participation from data centers can alleviate strain during peak periods.
Ooley expressed a deliberate wariness about overextension, drawing on his experience during the dot-com collapse. He observed a current supply-demand imbalance, with demand outstripping supply and community pushback further constraining new capacity, leading to continued price pressure for AI customers. He expects industry consolidation and anticipates AI use cases, particularly those already integrated into daily infrastructure like pancreatic cancer detection and fraud detection, to drive sustained growth.
Looking ahead, Ooley highlighted structural anxieties including securing power in suitable locations, being a credible partner to host communities, and managing large-scale buildouts. He cited DataBank's collaboration with Culpeper, Virginia, and Dominion Energy to establish a designated "tech zone" for data center development away from residential areas. DataBank aims for 100 percent renewable power by 2030, currently at 80 percent, and prioritizes investment-grade enterprise customers for long-term growth, even capping allocations to newer "neocloud" providers.