Data centers will continue to surge in both size and number according to early reports in 2025, building on the trend of outlooks published last year.
The average capacity of hyperscale data centers set to open between now and 2029 will be almost double that of current facilities, according to research from Synergy Research Group.
While the critical IT load of hyperscale data centers typically increases over time, Synergy said generative AI has supercharged that trend.
At the same time, the number of operational hyperscale data centers continues to grow, and Synergy found there will be an element of retrofitting existing sites to increase capacity. All told, this will see the total capacity of all operational data centers grow almost threefold by 2030.
“The number of operational hyperscale data centers continues to grow inexorably, having doubled over the past five years,” John Dinsdale, a Synergy Research Group analyst, said.
“The math is complicated as the mix of hyperscale data centers continues to change - old versus new, region by region, and owned versus leased - but in aggregate we will see GPU-oriented infrastructure leading to a doubling of the capacity of new hyperscale data centers,” Dinsdale added.
Similarly, research from real estate firm JLL found that all signals suggest AI data center demand will continue to build momentum in 2025.
Based on an analysis of developments both under construction and in planning, JLL found the global data center market will likely grow at a 15% compound annual growth rate (CAGR) through 2027. This is JLL’s baseline forecast, with upside potential for a 20% CAGR.
More of the same in 2025
Both reports build on a trajectory firmly established in 2024, which saw most research estimate steep data center growth on the back of an increasing industry focus on generative AI.
2024 saw demand for hyperscale locations increase, according to previous research from Synergy, with these data centers accounting for over 40% of global capacity compared with figures from 2018, which put on-prem facilities constituted 60% of capacity.
This growth is also expected to place significant strain on energy grids on both sides of the Atlantic, with industry stakeholders voicing concerns over a surge in power consumption and the associated environmental effects.
Research from Berkeley Lab, which analyzed data center electricity use in the US, found that data centers could be using 12% of American energy by 2028, marking an increase up from its current 4.4%.
This upward trajectory in both infrastructure expansion and energy consumption could pose problems, though. Schneider Electric expressed “significant concerns” at the growth of data center electricity demand, suggesting it may begin to impact regional energy networks.
“Power is definitely a challenge. As an industry we need it, and our customers need it, but the unfortunate reality is that countries haven't invested in power infrastructure or been able to keep up with demand in key locations,” David Watkins, solutions director at VIRTUS Data Centres, told ITPro.
“The result is that often there is power, but the national grids cannot deliver it to the areas where it is needed,” Watkins said.
Watkins added that data center providers must continue to push hard on lowering Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) and develop more efficient technologies.
