\u201cThese AI machines are very expensive. They use a lot of power,\u201d Vita said. \u201cAnd they put out a lot of heat because they\u2019re using graphics cards.\u201d<\/p>\n
Vita said traditional servers may run at a fraction of that level. AI boxes, packed with graphics cards, run hotter, harder and for longer periods. That changes the power load in a rack and puts strain on cooling systems that older facilities were never designed to support.<\/p>\n
New AI facilities are being planned around that demand. Vita said many of the newest projects want 50 to 100 megawatts of power or more and need to sit close to a substation capable of delivering it.<\/p>\n
\u201cYou really need to have a substation pretty much right next to where you\u2019re building,\u201d Vita said. \u201cThe power has got to be close to the facility.\u201d<\/p>\n
Hill said the boom has also run into equipment constraints. Developers trying to secure power infrastructure are dealing with shortages, including long waits for gas turbines needed to support large projects. That has turned electricity into a gating issue for growth.<\/p>\n
The capital required for these projects has drawn major institutional investors into the sector, including private equity firms and infrastructure funds such as BlackRock, Blackstone and Carlyle. <\/p>\n
Hill said those firms are building digital infrastructure platforms through acquisitions and new construction across the country.<\/p>\n
Consolidation reaches regional markets<\/p>\n
The surge of institutional capital is reshaping ownership across the data center industry.<\/p>\n
Large investors have been acquiring operators and assembling regional portfolios as they expand platforms tied to cloud computing and artificial intelligence.<\/p>\n
Earlier this year, H5 Data Centers acquired a Tampa facility from 365 Data Centers as part of a portfolio transaction backed by private equity firm Novacap. The deal also included facilities in Buffalo and Nashville.<\/p>\n
READ: TAMPA BAY REAL ESTATE NEWS<\/a><\/p>\n Another transaction arrived in 2024 when Tampa-based hosting provider Hivelocity was acquired by Colohouse, a digital infrastructure company backed by private equity firm Valterra Partners.<\/p>\n Those deals reflect a broader consolidation trend as investors pursue scale and long-term infrastructure assets connected to cloud services and AI demand.<\/p>\n Hill said financing terms can also vary depending on the customer behind a project. The hyperscaler\u2019s credit profile can determine whether banks or private credit funds take the lead, another sign that the market is being driven as much by capital markets as by real estate or technology.<\/p>\n Pressure on smaller operators<\/p>\n That capital wave is also reshaping the competitive environment for smaller regional providers.<\/p>\n Russell Bruno, founder of Ace Host, operates a data center in downtown Tampa that serves hundreds of customers. The facility sits at 412 E. Madison St., part of one of the city\u2019s historic network corridors.<\/p>\n Bruno said operating costs have increased as computing demands rise and infrastructure requires constant upgrades.<\/p>\n \u201cIn the last week, an AC unit went out,\u201d Bruno said. \u201cThat\u2019s ten grand. That\u2019s $10,000 of profit gone right out the window.\u201d<\/p>\n Bruno said the industry\u2019s value has shifted toward infrastructure that already has power in place.<\/p>\n \u201cThe rabbit hole is why data centers are so valuable now,\u201d Bruno said. \u201cIt\u2019s really a power play.\u201d<\/p>\n That pressure is changing which customers regional providers can serve and which ones the largest operators want. <\/p>\n Bruno said some smaller customers still choose regional providers because they want control over their own equipment, closer access to their infrastructure or faster support than they get from national platforms.<\/p>\n READ: TAMPA BAY RAYS NEWS<\/a><\/p>\n Vita said many clients still value being able to call someone who knows their systems.<\/p>\n \u201cPeople like knowing who they\u2019re dealing with,\u201d Vita said. \u201cThey want to know the techs. They want to be able to pick up the phone and talk to someone.\u201d<\/p>\n At the same time, Bruno said larger infrastructure players often have little interest in smaller accounts.<\/p>\n \u201cI get a lot of the business that they don\u2019t want,\u201d Bruno said. \u201cIf someone\u2019s spending $500 a month or $1,000 a month, they don\u2019t want that customer. They\u2019ll raise the price and force them out.\u201d<\/p>\n Ace Host\u2019s typical customer generates between $500 and $5,000 a month, Bruno said. Those customers still need secure hosting, colocation services and disaster recovery systems. They also operate in a market where older facilities can run out of power or cooling capacity before they run out of floor space.<\/p>\n That is one reason the market is dividing more clearly. Vita said hyperscale campuses built for AI and cloud workloads operate under a different set of economic principles than smaller, high-touch regional facilities.<\/p>\n \u201cThere\u2019s definitely a split happening between the hyperscale development and the high-touch regional infrastructure providers,\u201d Vita said.<\/p>\n Where Florida fits<\/p>\n Florida has not yet emerged as one of the country\u2019s primary hubs for hyperscale data center development.<\/p>\n Hill said developers evaluate several factors when selecting locations, including electricity availability, land costs and environmental considerations. Most of the projects now moving through development are new builds rather than retrofits because hyperscale campuses require large sites and substantial new infrastructure.<\/p>\n Large facilities also require extensive cooling capacity and can draw heavily on local water resources. Hill said those demands, combined with land costs, can push projects away from dense urban counties and toward outer-ring markets with cheaper land and fewer resource conflicts.<\/p>\n![\"412](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2026\/03\/Untitled-1-2026-03-10T102652.384-1000x563.jpeg\")
Ace Host operates a data center inside the building at 412 E. Madison St. in downtown Tampa, part of one of the city\u2019s historic network hubs.<\/p>\n
![\"Map](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2026\/03\/Untitled-1-2026-03-10T103447.572-1000x563.jpeg\")
<\/a>Map of data center locations across the Tampa Bay region. Courtesy of Tampa Data Center.<\/p>\n