AI boom could leave 40% of data centres power-starved by 2027: Gartner

AI boom could leave 40% of data centres power-starved by 2027: Gartner

AI-generated image of a server room in a data center

New research from Gartner suggests that increased power demands from data centres running AI and generative AI workloads could constrain power availability in 40% of sites by 2027.

The analyst firm estimated that the power required for data centres to run incremental AI-optimised servers will reach 500 terawatt-hours (TWh) per year in 2027 — 2.6 times the levels in 2023.

Gartner suggested that the rapid increases in electricity consumption could reach as high as 160% growth over the next two years.

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“The explosive growth of new hyperscale data centres to implement generative AI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough,” said Bob Johnson, VP analyst at Gartner.

“In turn, this threatens to disrupt energy availability and lead to shortages, which will limit the growth of new data centres for generative AI and other uses from 2026.”

A graph from Gartner displaying the power required for AI data centres to run newly added AI servers per year

Data centre operators are increasingly supplementing or switching their energy supplies with renewable energy sources, such as nuclear and thermal to shore up their power needs.

Just this week, the Biden administration unveiled a framework aimed at tripling the US’ nuclear energy capacity by 2050 in a bid to quell increased demands from data centre operators.

However, Gartner's research suggested that alternative energy options could take years to come online, with Johnson adding: “Significant power users are working with major producers to secure long-term guaranteed sources of power independent of other grid demands.

“In the meantime, the cost of power to operate data centres will increase significantly as operators use economic leverage to secure needed power. These costs will be passed on to AI product and service providers as well.”

Gartner suggested that sustainability goals will negatively affect short-term solutions to provide more power to data centres.

“The reality is that increased data centre use will lead to increased CO2 emissions to generate the needed power in the short-term,” Johnson said. “This, in turn, will make it more difficult for operators and their customers to meet aggressive sustainability goals relating to CO2 emissions.”

The analyst firm recommended that firms re-evaluate their sustainability goals relating to CO2 emissions in light of future data centre requirements and power sources over the next few years.

In the long term, Gartner suggested newer energy solutions will help alleviate power issues, such as improved battery storage like sodium-ion batteries and small nuclear reactors.

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