Data centres may not keep up with AI capacity requirements – analysis

Demand for data centre capacity may outstrip supply as a result of the huge requirements of artificial intelligence (AI), according to a new report.

GlobalData’s Data Centers report explains that the data centre market is becoming more challenging in large part due to a surge of AI-related developments and rising demand for computing power, which leads to increased electrical power requirements.

“Since the release of ChatGPT, the tech industry has recognised that existing data centre infrastructure is approaching its limits,” it says. “Server racks in data centres will soon be unable to provide the electrical power required to train increasingly larger and more complex large language models.”

Through their powerful computing abilities, vast capacities and fast, reliable operability, data centres allowing businesses to deliver online services, store valuable data and run power-hungry applications. Indeed, GlobalData’s Cloud Computing report forecasts that the global cloud computing market underpinning much of this and largely facilitated by data centres will be worth $1.5trn in 2028 having grown at a compound annual rate of 17% since 2024.

“The cloud computing industry is being shaped by multi-dimensional forces, such as booming AI demand, edge-based low-latency requirements, regulation and sustainability concerns,” the report says. “Cloud providers are increasingly investing in custom chips and AI tools to meet evolving demands.”

However, shifts in business trends like growing demand for digital and online services, greater automation across industries and increased use of integrated networks of systems and platforms are increasing demand for data centres.

Of the impact of AI’s emergence, the Data Centers report states: “AI created new demands on data centre infrastructure, as AI workloads require significant computing power. In parallel, the growth of edge computing (where data is processed closer to the user) has driven the development of smaller, localised edge data centres.”

To accommodate the growing demand, more and more data centres are being constructed. GlobalData research shows that the number of data centre projects by construction start date remained relatively stable between 2019 and 2024 before surging in 2025 and 2026 due to companies scaling up data centre projects to support growing AI workloads. This is problematic in itself, though, due to the power required to run the growing number of projects.

“Data centres are significant drivers of electricity demand,” the report adds. “They run on a huge scale, 24 hours a day, 365 days a year. In addition, power requirements for AI applications are rising sharply and are being reflected in data centre energy consumption, creating sustainability challenges.

“The IEA estimates that data centres accounted for around 1.5% of the world’s electricity consumption in 2024, or 415TWh. Data centre electricity consumption will more than double to around 945TWh by 2030, representing just under 3% of total global electricity consumption in 2030 (base case scenario).”

“Data centres may not keep up with AI capacity requirements – analysis ” was originally created and published by Verdict, a GlobalData owned brand.

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