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How the Rise in AI Is Driving Data Center Growth

  • 26 March 2025

The rapid ascent of artificial intelligence (AI) is revolutionising the technology landscape, propelling unprecedented growth in data centre infrastructure. The computational power required to train machine learning (ML) models has been escalating at an estimated rate of 4.5 times annually since 2010. This surge is largely attributable to the increasing complexity and scale of AI models, which necessitate highly sophisticated data centre resources capable of managing intensive computational workloads.

Demand for AI-ready data centre capacity is forecasted to grow at an average rate of 33% per annum between 2023 and 2030. By the conclusion of this period, approximately 70% of the total data centre capacity is anticipated to be allocated for facilities designed to support advanced AI workloads. These projections highlight the pivotal role AI will continue to play in shaping the future of data centre infrastructure.

Consequently, data centres are undergoing significant advancements to address the intensive requirements posed by AI technologies, paving the way for a transformative era of innovation and operational scalability.

Understanding the AI-Driven Demand for Data Centers

AI technologies are computationally intensive, demanding substantial infrastructure for data processing and storage. Applications such as natural language processing, autonomous vehicles, and predictive analytics rely on advanced data centers to handle enormous datasets and execute high-speed computations.

Specific drivers of this demand include:

  • Data Processing Needs: AI systems analyze massive datasets, often in real-time, requiring exceptional data handling capabilities.
  • High-Performance Computing (HPC): The training of large language models like GPT-4 and other generative AI tools necessitates cutting-edge hardware, including GPUs and TPUs.
  • IoT Integration: AI-driven IoT solutions generate continuous streams of data, amplifying the need for robust and scalable infrastructure.
  • Edge Computing Expansion: AI applications in industries like healthcare, automotive, and retail require low-latency solutions, making edge-enabled data centers indispensable.

How Can Data Center Development Meet AI Requirements?

To cater to the evolving demands of AI applications, data center operators are adopting cutting-edge technologies and infrastructure designs. This includes investing in high-density servers, innovative cooling systems, and sustainable practices to reduce environmental impact.

Key Features of AI-Optimized Data Centers:

  1. High Power Density: As of early 2024, many AI-ready data centers are achieving average power densities of 20 kW or higher per rack, with projections indicating that this could increase to 50 kW per rack by 2027 as AI workloads continue to grow. 
  2. Advanced Cooling Technologies: Direct-to-chip liquid cooling and immersion cooling are increasingly common, reducing energy costs and optimizing thermal management.
  3. Modular Scalability: Prefabricated modular data centers enable rapid scaling while minimising initial capital expenditures.
  4. Flexible Deployment Models: Hybrid configurations combining on-premises, colocation, and cloud services enhance operational flexibility.
  5. Enhanced Connectivity: AI workloads require ultra-low latency and high-speed interconnections, supported by advancements in fibre-optic networks.
  6. Automation and AI Integration: AI-driven management tools enhance operational efficiency by predicting maintenance needs, optimising resource utilisation, and ensuring uptime.

These advancements create a positive feedback loop where AI innovation drives data center growth, and data center evolution, in turn, accelerates AI adoption.

Planning for Data Center Expansion

For organisations planning to build or expand AI-capable data centers, strategic considerations are paramount. Here are critical factors to keep in mind:

  • Location Optimisation: Choose sites near renewable energy sources and with favourable climate conditions to reduce cooling costs. Proximity to users can minimise latency for edge computing applications.
  • Regulatory Compliance: Ensure adherence to local and international data protection laws, such as GDPR and Singapore’s PDPA, while implementing robust cybersecurity measures.
  • Sustainability Initiatives: Adopt renewable energy sources, energy-efficient designs, and waste heat recovery systems to align with ESG goals.
  • Infrastructure Partnerships: Collaborate with trusted technology providers for simulation and modelling. For instance, EkkoSense’s EkkoCritical software offers AI-powered solutions to optimise cooling, power, and capacity, ensuring efficient operations while generating detailed ESG reports.

At Data Clean Asia, we leverage our partnership with EkkoSense to deliver end-to-end solutions for data center simulation and infrastructure modelling. Our expertise ensures data centers not only meet current AI demands but are also prepared for future technological advancements.

Conclusion

AI’s rapid growth is redefining the requirements for data centers, creating opportunities to innovate and scale infrastructure. By prioritising advanced technology, sustainability, and strategic planning, organisations can build data centers that excel in an AI-driven era. With Data Clean Asia’s specialised cleaning services and EkkoSense’s cutting-edge solutions, businesses can ensure their data centers are equipped for the future.

Discover how Data Clean Asia can optimise your data center for AI-driven growth. Visit us at Data Clean Asia.

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