D A T A C E N T R E P R E D I C T I O N S
with the invention of the steam engine or the commercialisation of electrical production and distribution . The opportunity for our industry is daunting , yes , but enormous – and we are going to see more capital expenditure and construction than ever before .
Prediction # 2 : Data centre operators will need to become increasingly selective with whom they work
We ’ ve seen this movie before . The emergence of Generative AI has spawned over 20,000 new AI businesses ( and no doubt an even higher number by the time this is published ).
This is a frenzy reminiscent of the e-commerce boom in 1997 , when I first entered the industry . We ’ re entering a period of similar turbulence and uncertainty , but it ’ s also an attractive one if we can get it right . It is imperative for operators to understand their AI customers ’ business models and revenue strategies . The industry must carefully consider how it can support the growth of AI without being tied to the ebbs and flows of individual AI businesses .
You can expect data centre operators to engage even more closely with big AI platforms to help ensure that the right amount of the right capacity is being delivered to the right place at the right time .
Prediction # 3 : The data centre industry will start to build much bigger data centres closer to the regional ‘ Edge ’ – and it ’ s not why you think
Gone are the days when access to capital was the biggest barrier to growth . Access to power has become the new data centre currency , particularly in Europe . The cloud demand for data centres in the last five years has sucked up all spare grid capacity in traditional locations – causing moratoriums and local resentment . To meet the extraordinary wave of predicted AI demand , data centre operators will have to think long term about alternatives to grid power capacity .
To meet this demand , we will see some data centre operators announce the building of their own energy production capacity and / or massive PPA ’ s . This will take a decade to come to fruition and will unfortunately be too little , too late . The alternative is to locate AI compute architecture in regional Edge locations away from the usual constellation of cities where historical data centre investment has gravitated towards .
Prediction # 4 : Europe ’ s data centre industry will have to engage with regulators and policy makers more frequently
In 2024 , the data centre industry will no longer escape regulatory and national policy scrutiny . Energy security , AI
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