Saturday, 24 January 2026

AI-driven data centre boom triggers unprecedented demand for power

January 27, 2025

Data centres are the bustling nerve centres of the digital economy. These hubs power everything from search engines to e-commerce platforms to credit card processing in an increasingly interconnected and electrified world.  

The data centre market is booming thanks to sustained growth of cloud services providers (CSPs) and the Artificial Intelligence (AI) revolution, with the size, scale and capacity of these operations expanding exponentially to keep pace with demand.  

AI requires far more computing power than traditional cloud computing functions, placing significant pressure on servers and local utility grids. Processing the average ChatGPT query, for example, demands more than 10 times as much electricity than a Google search.1  

Harry Handlin, U.S. Data Segment Leader, ABB, said:

“A decade ago, a 30-megawatt data centre was considered huge. Now when a company announces plans to build a 300-megawatt data centre, no one blinks an eye – and with AI, 1-gigawatt data centres are the norm.” 

The world’s biggest tech companies are projected to invest $1 trillion (£800bn) in new data centres over the next five years. This aggressive expansion is fuelling an unprecedented surge in demand for electricity.  

Data centres account for just over 1%2 of the world’s electricity consumption, with digitisation expected to double this figure by 2030. Energy consumption in a 50-megawatt data centre is comparable to a small town.3 Reliable access to high-quality power is critical to ensuring 24/7 uptime.  

This means data centre operators must upgrade their infrastructures to maintain a continuous, reliable and resilient power supply and meet surging data demand.    

Handlin added:

“What we’re seeing with AI is similar to the Space Race. It’s a sprint and a scramble to get the most electrical assets up and running to set the standard.” 

ABB Electrification’s industry-leading portfolio of solutions helps data centre customers around the world meet the energy challenges of today and tomorrow: from uptime to energy efficiency. 

One example is ABB’s HiPerGuard medium voltage Uninterruptible Power Supply (UPS) solution, which provides a continuous and reliable power supply. AI data centres are early adopters of this first-to-market power protection technology, which can be used as a battery storage solution to stabilise and secure networks by tapping into unused power reserves.  

The increasing focus on data centre sustainability and efficiency also factor into how ABB Electrification is supporting evolving customer needs. Microgrid solutions offer opportunities for data centres to leverage on-site generation such as solar panels coupled with a battery energy storage system as part of their energy mix.

The ABB Ability™ Data Center Automation platform allows operators to optimise energy usage and lower costs by automating cooling systems — which account for ~40%4 of a data centre’s power consumption.

With a global footprint and more than 100 years of electrification experience, ABB Electrification delivers solutions with speed and at scale.  

References:
ChatGPT requires 15 times more energy than a traditional web search (qz.com)
Data centres & networks – IEA
Energy efficiency predictions for data centres in 2023 | Data Centre Magazine
How Much Energy Do Data Centers Use? – Dataspan

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