The Green Energy Transition and AI: Revolutionizing the Data Centre Industry

Title Graphic

Data centres are undergoing a transformative revolution driven by the convergence of AI and green energy. In this article, we explore the fundamental shift in data centre design, site selection, and investment strategies in 2024.

Subtitle description of the article which cover the shift in design, site selection and investment strategy of data centre in 2024.

Demand Drivers
The digital economy and AI democratization are fueling increased demand for data centres. Structure Research estimates that global colocation MW will grow at 15.2% CAGR over the next five years. Over the next five years, data generation is expected to surpass the past decade’s total, necessitating expanded storage capacity. 

Data Centre Design and Operations
To support AI workloads, data centre design is evolving with specialized equipment and innovative cooling techniques like liquid cooling. Energy efficiency is prioritized through software solutions and algorithms that optimize power usage.

Power Sourcing and Sustainable Energy
The rapid advancement of AI is pushing the boundaries of scale in new developments, with power requirements now ranging from 300 megawatts (MW) to over 500MW. Power limitations pose challenges for data centres, driving the adoption of sustainable energy sources. Governments and operators are seeking reliable utilities to overcome shortages. AI-driven developments increase power demands, emphasizing the importance of power availability and delivery timelines.

Opportunities for Sustainable Growth
Amidst a real estate market pullback, data centres offer promising growth opportunities. Embracing the AI and green energy transition enables businesses to capitalize on market potential and drive innovation.

The data centre industry is undergoing a significant transformation fueled by AI and green energy. Organizations that adapt to these changes can navigate this revolution and thrive in a data-driven future.