12 Days of Data Centre Christmas: October 2024
McKinsey research suggests Europe data centre power consumption will surge from 62 TWh to over 150 TWh by 2030, driven by AI advancements and digitisation
The rise of AI is causing the data centre industry to experience overwhelming demand. Likewise, swelling growth in global data centre demand has also come with a rise in power demands.
In order to meet new IT load demands, McKinsey suggests via its latest report that more than US$250-300bn of investment will be needed in data centre infrastructure. The firm suggests that European demand is expected to peak so much that it will more than triple by 2030.
As businesses and organisations increasingly adopt AI-driven solutions, the demand for computing power has skyrocketed, placing unprecedented pressure on data centre infrastructure.
The report says: “Currently, the entire European power ecosystem faces significant challenges in accommodating this growing demand. These include limited sources of reliable power, sustainability concerns, insufficient upstream infrastructure for power access, land availability issues, shortages of power equipment used in data centres and a lack of skilled electrical tradespeople for building facilities and infrastructure.”
What New US Investment Means for UK Data Centre Growth
The UK data centre market has been busy in recent weeks, particularly in the wake of the October 2024 International Investment Summit.
Eager to bolster its data centre operations, the UK announced a major investment of £6.3bn (US$8.2bn) by US companies into industry-based technology. Including ServiceNow, CyrusOne, CloudHQ and CoreWeave, the investment includes significant data centre funding, in addition to SeAH Wind expanding its operations in the Teesside region to provide £225m for wind manufacturing and to create 750 jobs.
The news came in the midst of the UK government’s broader plans for the economy, which includes getting numerous industries ‘back on track’ for digital transformation. It also came in the wake of the Global AI Summit in 2023, demonstrating how the country continues to express its commitment to leading responsible innovation.
UK Prime Minister, Sir Keir Starmer, hosted the summit in London with hundreds of global business leaders and stressed the importance of driving growth and innovation across the country.
At the summit, the UK government unveiled an additional £50bn (US$65bn) in new investments designed to stimulate growth in sectors like AI, life sciences and infrastructure development.
Keir Starmer emphasised the importance of private sector involvement as the country aims to create a stable environment for economic expansion. This is to align with the Labour government’s pledge to boost the economy.
See also in October
Top 10 Data Centre Construction Companies
Without a Clear Data Strategy, Business AI Growth Could Fail
The Future of the Cloud with CyrusOne and Granger Reis
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