Park Place: AI to Drive Cloud and Data Centre Growth in 2025
As cloud migration strategies continue to evolve into 2025, organisations within the data centre industry are taking a more nuanced approach to their infrastructure decisions.
Although there is a push towards public cloud adoption, many businesses are embracing hybrid cloud solutions, particularly as AI continues to grow as a solution within the sector.
We hear from leading executives at Park Place Technologies, a global data centre and networking optimisation firm, about how businesses within the sector are focusing on seamless data migration and how they will manage complex distributed infrastructure in 2025.
How cloud migration will continue in 2025
In recent years, the data centre industry has seen an ‘all-in’ approach when it comes to cloud and on-prem infrastructure. Many businesses are now choosing to move workloads and applications to the public cloud as a result.
However, as this movement slows, organisations are now embracing more of a hybrid cloud strategy by repatriating some data back on-premises.
“This shift is partly due to rising pragmatism as the demand for AI and the increasing applications of the technology reshape the market and necessitate greater control over data,” explains Chris Carreiro, Chief Technology Officer at Park Place Technologies.
“These sophisticated use cases often require a more agile approach to leverage the full potential of AI, starting with tighter integration with core business processes – bringing data directly to AI. But this shift is not without its challenges.”
As the industry moves into 2025, Park Place Technologies expects that organisations will start to focus more on seamless data migration, in order to make security measures more robust across hybrid environments.
Likewise, these businesses will be investing further in skilled IT talent capable of managing complex distributed infrastructure.
“The integration of on-prem systems with existing cloud workflows and applications means that organisations must ensure they plan effectively to avoid any disruption, whilst enabling long-term advancement,” Chris adds.
Charting AI infrastructure growth
The UK in particular has seen plenty of data centre action in 2024, with the government having classed data centres as critical national infrastructure (CNI). This has helped the industry achieve greater recognition at a time where AI is dominating the industry.
“As the demand for AI rises, so does the need for more space to house the infrastructure to make innovation possible,” Chris says. “We are already seeing an unprecedented rise in the construction of data centres all across Europe, with each build boosting local economies - just as we have seen in Ireland, where data centres have contributed over €7 billion (US$7.3bn).
“In 2025, we will see a growing focus on designing data centres in a way that allows for an increased hardware footprint for AI adoption and implementation. This will involve considering sustainable cooling solutions, such as water and liquid cooling, which are becoming industry standard as organisations strive to reduce the environmental impact of data-intensive technologies.
“With the focus on growing the physical space for AI and solutions that help organisations make the best use of those spaces in the future, we will continue to see the UK battle to make its AI ambitions more ambitious.”
Fighting misconceptions about recycled technology
Despite a global push to meet sustainability goals, Park Place Technologies suggests that the technology industry continues to avoid repurposing, reselling and recycling technology.
Despite cost savings and environmental benefits of these greener solutions, Ian Shearer, Managing Director APAC & EMEA at Park Place Technologies, states that businesses are still stuck with the mentality that new is better.
- According to the UN, less than a quarter of e-waste is recycled, with a record 62 million tonnes of e-waste produced in 2022 - up 82% since 2010
“This reluctance to implement products that support a more circular economy is a particularly damaging failure amidst the continued rise of e-waste across the globe,” comments Ian.
“In the coming year, we predict that businesses will make further progress to overcome the fear of refurbished and pre-owned technology as the demand for hardware rises with the industry push for AI solutions.”
Park Place Technologies expects that more businesses will recognise the responsible sourcing of sustainable solutions as an integral part of a more environmentally-conscious digital future.
Ian adds: “This shift to use more used tech will be driven by more than just environmental concerns, but also economic factors, as UK businesses aim to find more strategies for efficiently stretching their IT budgets – freeing up resources to invest elsewhere.”
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