Digital transformation set to drive huge rise in demand for critical resources
A survey of business leaders suggests new technologies such as AI, automation, cloud computing, and data analytics will almost double this year, from 22% to 40%
![Digital transformation concept image showing a digital interface with human hand interacting with data flows.](https://cdn.mos.cms.futurecdn.net/iRBd9DRAECSMciNC4CpMYf-320-80.jpg)
UK businesses will require up to 30% more energy, computing power, and network capacity this year to support their digital transformation, according to research.
A survey of 504 UK business leaders commissioned by business internet service provider Beaming has found that the proportion of UK businesses using new technologies such as AI, automation, cloud computing, and data and analytics will almost double this year, from 22% to 40%.
Almost a fifth said they're introducing technologies to transform their products, services, and operations. And this will create a big rise in demand for critical resources over the coming year, according to Beaming.
"Digital transformation represents a fundamental shift in how businesses operate, and that shift is accelerating," said managing director Sonia Blizzard.
"Our research shows that while many businesses are making significant strides with technology, there's a pressing need for additional resources to support them to make cost-effective, sustainable, and humane choices."
UK businesses will require 19% more computing capacity this year than last, says Beaming. One in six small, medium, and large firms believes that their need for computing power will at least double this year, with demand looking set to increase most in the manufacturing, finance and accounting, hospitality, and leisure sectors.
Meanwhile, UK businesses are set to use 21% more energy for IT during 2024, with large companies predicting a 98% rise. The finance and accounting and hospitality sectors in particular say they're likely to nearly double their current energy consumption. Just 11% of firms, though, told the researchers that reducing environmental impact was a consideration in their IT investment plans.
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Demand for internet and network capacity is also set to rise by 30% this year to handle the extra data and communications traffic associated with digital transformation. Large businesses say they expect a 95% increase in network traffic, while small and medium enterprises project increases of 76% and 75% respectively.
Around one in seven companies carrying out digital transformation initiatives couldn't say how their technology adoption plans would affect their need for computing resources, energy, and connectivity.
Balance performance requirements with cost, risks, and deployment needs
"The growing demand for energy, computing power, and network capacity could place significant strain on existing infrastructure and resources, potentially leading to higher costs, environmental impact, and the risk of overburdening current systems," warned Blizzard.
"Digital transformation should align with your broader business strategy and consider the impact for both IT and people. Approaches to new tech, like generative AI, must reflect company values and consider staff and customer needs. With thoughtful planning and expert support, businesses can harness digital transformation to stay competitive."
Emma Woollacott is a freelance journalist writing for publications including the BBC, Private Eye, Forbes, Raconteur and specialist technology titles.
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