How Will Data Centers Evolve From Now To 2030?

Data centers are the lifeblood of the information society. We have seen enormous global growth in how many data centers are required because so many businesses are now using cloud services and so many services now require digital interaction – everyone needs storage and access to computing power for so many services today.

These statistics showing data center revenue give an impression of just how quickly this market is growing. Spending on data centers globally in 2017 was around $273 billion – a significant amount. However, the 2029 prediction is $624 billion. Each year sees significant growth.

The increase in the use of artificial intelligence (AI) is a major driver. AI services need large amounts of background power and computation that is performed in data centers before results are delivered to the device that an end user is working with.

Some climate scientists have called this increasing use of AI a catastrophe for the environment because the rapid growth in data centers is creating a huge demand for more energy. More AI users leads to more data centers and this leads to a need for much more electricity – to power the computing systems and the cooling devices they need.

As you might expect, this rapid growth and the concern over the need for more energy has created a lot of fear, uncertainty, and doubt. But if you look at what many are proposing for the data centers being constructed in 2025 and beyond, there is some cause for hope.

A report from Emerson Power Network published in 2024 highlights the general approach moving forward:

• By 2025, data center managers expect nearly 25% of their power will come from solar energy, which today accounts for about 1% of a data center’s energy supply.
• In 10 years, nearly three-quarters of the respondents believe that at least 60% of computing will be cloud based.
• Finally, 58% of managers expect data centers will be smaller in 10 years: 30% predicted they’ll be one-half the size of today’s data center, 18%, one-fifth the size, and 10%, one-tenth the size.

Let’s unpack this. There is a strong focus on ensuring that more and more data centers are sourcing energy from renewable sources. In addition, more technology executives expect data centers to be more powerful and therefore smaller.

In fact, the demand for more renewable energy is largely being driven by the data center market. Some individual consumers are asking their energy company for sustainable options, but the real factor that can make a change here is when companies like Google and Microsoft announce that they want to build a pathway to a completely sustainable future.

These major business pledges are generally focused on 2030. By the end of this decade, we will see major growth in the need for more data centers, but we will also see this switch into sustainable energy use.

One thing is clear. Data centers are needed more than ever. More and more businesses need cloud services and AI is being integrated into more business services. I know the managers in the Emerson report suggested that data centers can get smaller as they get more powerful servers, but I think the real focus is on the level of sustainability.

This is a huge area of growth, but it cannot continue without a focus on building a more sustainable source of energy. The real question for data centers from 2025-2030 will be whether companies like Google and Microsoft can hit their projected sustainability targets.

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