A recent report by the International Data Corporation predicts a significant increase in data centre energy consumption due to Artificial Intelligence workloads, reaching 146.2 terawatt hours by 2027.
The rise in AI adoption and other energy-intensive processes is expected to raise operational costs and pose sustainability challenges for data centre operators worldwide.
Electricity represents the largest ongoing expense for data centres, with a substantial portion of spending attributed to it, as highlighted in the IDC report titled “The Financial Impact of Increased Consumption and Rising Electricity Rates in Data Centre Facilities Spending.”
The report emphasizes that the electricity consumption of data centres is escalating with the growing workload demands, particularly those related to AI, projecting a compound annual growth rate of 40.5% for AI data centre capacity through 2027.
Energy consumption for AI workloads is anticipated to grow at a CAGR of 44.7%, reaching 146.2 TWh by 2027, which will represent a significant portion of the total electricity used by data centres.
Global demand for data centre energy is forecasted to more than double between 2023 and 2028, with a five-year CAGR of 19.5%, reaching 857 TWh by 2028. However, rising electricity prices present a challenge influenced by various factors such as supply and demand dynamics, environmental regulations, and climate change-induced extreme weather events.
The report also highlights the potential for significant annual increases in electricity spending for data centres, stressing the importance of improving energy efficiency to achieve cost savings. IDC’s Research Director for Cloud to Edge Data Centre Trends, Sean Graham, underscores the need for data centre operators to invest in renewable energy solutions to enhance energy efficiency and support sustainability initiatives.
Graham recommends various strategies, including advanced chip technology, liquid cooling, redesigned data centre layouts, and enhanced power distribution methods, to enhance energy efficiency and reduce operational costs.
Investments in renewable energy sources like solar and wind power are particularly encouraged for their environmental benefits and cost-effectiveness, aligning with both sustainability goals and financial savings for data centre operators.