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AI integration spurs demand for new, efficient data centers amid power concerns
Research - JUNE 27, 2024

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AI integration spurs demand for new, efficient data centers amid power concerns

by ANDREA Zander

As AI becomes more integrated in industries’ production, new data centers will need to come online to ensure optimal design and sufficient power capacity, writes Victoria Tribone, economist at Oxford Economics, in a research briefing dated June 25.

According to U.S. Census survey data, 7 percent of firms across all industries plan to use AI in the production of goods and services in the next six months.

With the current demand and expected surge there is concern of the limitations of power such as hardware cooling, which accounts for 40 percent of data centers’ electricity demand and is vital as AI and computationally intensive workloads proliferate. Creative solutions will be needed to avoid straining the grid. During the past two decades, there have been improvements in data centers’ energy efficiency, such as air-flow management and cooling systems and hardware and software that uses computing capacity more efficiently.

Using data from its

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