Data centers to double capacity through 2027 despite power limits
ILLINOIS, UNITED STATES — The global data center industry is expected to continue its rapid expansion through 2027, propelled by the increasing use of cloud services, artificial intelligence (AI), and edge computing,
According to a report from real estate services firm JLL, the global data center capacity will nearly double from 10.1 zettabytes (ZB) in 2023 to 21.0 ZB in 2027, reflecting a five-year compound annual growth rate (CAGR) of 18.5%.
However, a significant power shortage could impede growth.
Despite stable electricity consumption since 2015, smaller markets are experiencing a surge in energy demand, putting a strain on the existing power infrastructure that also supports other high-energy sectors like electric vehicles and manufacturing.
AI advancements are reshaping data center design and operations. Generative AI, in particular, necessitates more densely packed and specialized facilities, which in turn require more efficient cooling solutions. Liquid cooling, which can use up to 90% less power than traditional air cooling, is becoming more prevalent.
As the demand for power intensifies, data center developers are strategically selecting sites with access to sustainable energy sources. Renewable energy is becoming increasingly important for data centers aiming to reduce their carbon footprint.
Europe, for instance, requires an estimated €584 billion ($628 billion) investment in its grid by 2030 to transition to clean energy, while the United States needs about $2 trillion to upgrade its grid for additional renewable energy capacity.
Additionally, on-site power generation technologies like hydrogen fuel cells and small nuclear reactors are emerging as viable options.
JLL’s report underscores the importance of strategic planning and partnerships to secure adequate and sustainable power. It calls for innovative design and operational solutions to meet the growing energy demands while minimizing environmental impact.
As data generation is expected to increase significantly, the data center industry must take creative steps to ensure efficient and sustainable growth.
A separate forecast from ResearchAndMarkets.com predicts that the global mega data center market will reach $33.75 billion by 2028, climbing at a 5.6% CAGR between 2023 and 2028.
