This is according to The Data Centres 2024 Global Outlook Report from JLL which covers themes including the need for global investment, the changing location and design considerations for data centres to reduce energy use and the press on limited energy resources in many countries.
In the next five years, consumers and businesses are expected to generate twice as much in the next five years as all the data created over the past 10 years.
With the growing demands of AI, data centre storage capacity is expected to grow from 10.1 zettabytes (ZB) in 2023 to 21.0 ZB in 2027 for a five-year compound annual growth rate of 18.5%.
Generative AI’s greater energy requirements, ranging from 300 to 500+ megawatts will also require more energy-efficient designs and locations.
The need for more power will require data centre operators to increase efficiency and work with local governments to find energy sources to support data centre needs.
“As the data centre industry grapples with power challenges and the urgent need for sustainable energy, strategic site selection becomes paramount in ensuring operational scalability and meeting environmental goals,” said Jonathan Kinsey, EMEA lead and global chair of data centre solutions at JLL.
“In many cases, existing grid infrastructure will struggle to support the global shift to electrification and the expansion of critical digital infrastructure, making it increasingly important for real estate professionals and developers to work hand in hand with partners to secure adequate future power.”
To support growing requirements, the report says that critical changes need to be made across the globe to increase power usage.
In Europe, one-third of the grid infrastructure is over 40 years old, requiring an estimated €584 billion of investment by 2030 to meet the European Union’s green goals.
In the United States, meeting energy transition goals to upgrade the grid and feed more renewable energy into the power supply will require an estimated $2 trillion.
Data centres’ rapid growth is also putting pressure on limited energy resources in many countries. In Singapore, for example, the government enacted a moratorium to temporarily halt construction in certain regions to carefully review new data centre proposals and ensure alignment with the country’s sustainability goals.
Transformative impact
In a recent interview with Capacity, Kinsey said that AI truly stands to be the most transformative thing for the data centre industry. He expects there to be a “democratisation” of sorts, meaning reducing the barriers to using AI, thus making it more accessible.
Kinsey is keen to note that AI has an impact both at an asset level and a scale/volume level whether that be across national or international infrastructure.
“Or whether that be across how it is being considered at a government policy level across different nations because AI is increasingly about how a nation can stay competitive in a global economy,” he says.
This, Kinsey believes, is highlighted by the vast investments into AI and its continued development.
You can read the full interview with Kinsey in Capacity’s upcoming Metro Connect mini magazine.
