Gartner projects a challenging future for AI data centers, forecasting operational limits due to power shortages by 2027. This stems from a rapidly increasing demand for electricity to support AI and GenAI that will surpass current utility providers’ capabilities. Bob Johnson, Vice President Analyst at Gartner, cited the massive growth of hyperscale data centers as a significant factor driving this insatiable energy demand, outpacing expansion capabilities of utility providers.
The report outlines that power requirements for these AI-focused data centers could reach 500 terawatt-hours annually by 2027, a dramatic 2.6 times increase from 2023’s levels. This trend accentuates the urgent need for new, larger data centers to manage extensive datasets for training and implementing large language models (LLMs) essential for GenAI applications. Yet, power shortages might be an immediate hurdle as the necessary infrastructure takes years to develop.
As power becomes a central determinant in data center growth and GenAI advancements, Gartner urges organizations to ponder potential risks associated with these shortages. The looming power constraints are likely to increase electricity prices, thereby inflating the costs of maintaining LLMs. Furthermore, significant power users are seeking guaranteed long-term power solutions to mitigate reliance on the unstable grid supply. Johnson noted, “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/GenAI product and service providers as well.”
Organizations should adapt to these anticipated power costs by securing long-term contracts at favorable rates and exploring alternative, less power-intensive solutions. As competition for energy resources escalates, sustainability goals might be jeopardized. The reliance on fossil fuel plants may sustain to meet the surging demand, complicating zero-carbon objectives.
The increase in data center usage translates to higher CO2 emissions, complicating achievement of sustainability targets. Meantime, current reliable power sources include hydroelectric, fossil fuel, and nuclear plants. Future developments may lean on advancements in battery storage and innovative clean energy sources like small nuclear reactors to align with sustainability goals.
