ABI Research predicts the number of data centers will more than double by 2030 from the 10,978 active in 2023, leading to increased power usage for cooling. In fact, last year data centers used over 300 terawatt-hours (TWh) just for cooling, a figure expected to triple by 2030.
This surge in power demand may result from the physical size of new data centers, as well as the increasing demand for advanced technology like generative AI. More powerful processors require robust cooling systems, which further drives up energy needs. Such effective cooling equipment is essential, yet it also contributes to rising power demands.
Furthermore, energy consumption is already influencing planning decisions. In Ireland, Google‘s application to build a new data center was denied due to concerns about local power grid capacity and insufficient renewable energy sources. The denied application also noted potential carbon dioxide emissions exceeding 224,000 tonnes annually, illustrating environmental concerns.
In Ireland, data centers consumed 21% of electricity in 2023, compared to 5% in 2015. For reference, urban dwellings accounted for 18% of consumption. Similar concerns are emerging in the US, where data centers currently take up 3-4% of total power demand, projected to rise to 11-12% by 2030.
Managing this energy consumption demands attention. McKinsey warns that without substantial investments in power infrastructure, the potential of technologies like AI may not be fully realized. As ABI Research analyst Rithika Thomas notes, cooling alone can represent up to 40% of a data center’s energy usage, necessitating strategic and comprehensive solutions to optimize systems and reduce operational costs.
