You must classify facilities into distinct categories, as datacenters are not only buildings with a bunch of computers inside, but purpose-built and oftentimes designed for specific uses. Recent news is saturated with stories of rapid expansion projects to fuel rising AI use, and generally speaking, these AI facilities can be further away from telecommunication hubs as the focus is on energy cost and water cooling requirements. The time delay of sending light over fiber optic cables out to these facilities in order to communicate with your favorite AI tool is insignificant relative to the amount of time it takes for them to come up with a non sequitur response. Another category is referred to as single-tenant hyperscaler facilities. These are where a single company like Amazon (AWS), Microsoft (Azure), or Google (GCP) uses the facility exclusively to serve their cloud customer needs. This has a feedback loop effect, where as more businesses move into a facility the latency of communication between those companies also goes down. Take a drive around Loudoun County 1 and you’ll see for yourself. As a center point of ARPA and MAE-East (an early Internet Exchange point), the region quickly grew to host these cloud companies.
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