'AI boom triggers 160% data centre power surge'

Artificial intelligence (AI) is rapidly transforming industries from healthcare to finance, but it comes with a massive energy footprint. Data centres, the backbone of AI, consume huge amounts of power, pushing companies like Meta, Google, and Microsoft to find sustainable solutions. The complexity and scale of AI models, particularly training large neural networks, require extraordinary computational power, resulting in substantial carbon emissions. For example, maintaining optimal cooling in data centres alone adds significant energy overhead. This demand is further driven by AI technologies like autonomous vehicles and predictive analytics, which require continuous data processing. The increased energy use means more burning of coal, oil, and natural gas, which leads to higher emissions. With renewable energy not scaling fast enough, fossil fuels are still the main power source for many data centres. This reliance is especially concerning given projections that power demand in data centres will increase by 160% by 2030, with AI’s energy needs growing rapidly. Recent headlines show the scale of the challenge: Meta’s landmark 20-year deal to source nuclear power for its Illinois data centres underlines just how critical nuclear energy has become in meeting AI’s soaring electricity demand. Meanwhile, Google’s agreements to power its data centres with small nuclear reactors and Microsoft’s plans to restart the Three Mile Island plant further highlight how these tech giants are betting big on nuclear to keep AI running without ramping up carbon emissions. AI boom threatens net zero goals Data centres, the backbone of AI-powered systems, are among the most energy-intensive facilities in the world. According to the EU Energy Efficiency Directive (EED), operators must now demonstrate continual energy improvements. This directive aligns with broader regulations like the European Climate Law, which enforces the EU’s target of climate neutrality by 2050. In the UK, schemes like ESOS Phase 3 place additional energy reporting and efficiency requirements on operators. In Europe, three of the largest economies - the UK, Germany, and France - are at the forefront of efforts to decarbonise their economies and transition to net zero. However, the data centres operating within these countries are facing significant challenges in meeting their decarbonisation and sustainability targets. Recent findings from a CFP Energy survey highlight that while the majority of data centres in these countries have a net-zero strategy in place, achieving their targets remains elusive. Net zero strategy adoption • UK: 94% have a net zero strategy, but 22% are not meeting their decarbonisation and sustainability targets.• Germany: 90% have a net zero strategy, but 30% are falling short of their targets.• France: 86% have a net zero strategy, with 14% not hitting their targets. These statistics underscore a critical reality: despite ambitious targets and high adoption rates of net zero strategies, achieving actual decarbonisation is proving to be a major hurdle. This trend is particularly concerning as AI demand is poised to increase significantly. If the cost equation remains imbalanced, we may soon face a situation where net zero targets are discarded in favour of meeting the demands of AI, as is already happening in various parts of the world. The growing reliance on carbon offsetting With the rapid increase in energy demand from AI, many large tech companies, including Microsoft, are turning to carbon credits and voluntary carbon projects as a means to mitigate their environmental impact. This has become crucial for companies that simply cannot reduce their energy consumption with current technologies. For instance, Microsoft recently entered into an agreement with Re-Green, committing to offset its emissions through carbon credit purchases and climate-positive projects. While these measures help compensate for carbon emissions, they highlight a gap in current energy solutions: the technology and power infrastructure are not yet capable of fully supporting the sustainable growth of AI. Mitigating the environmental footprint of AI and data centres CFP Energy, a UK-based provider of energy trading, risk management, and environmental services, says it advocates for: • Sustainable construction — Reducing environmental impact from the outset by using low-embodied-carbon materials in data centre design, which helps cut emissions during both construction and operation. • Advanced cooling systems — Improving energy efficiency through approaches like liquid cooling, which reduce electricity usage while maintaining optimal performance in increasingly power-intensive environments. • Voluntary carbon offsetting — Compensating for unavoidable emissions with verified carbon credits. However, recent disputes - such as the suspension of a Kenyan soil-carbon project involving Netflix and Meta - reveal serious concerns about transparency, community impact, and oversight. These events highlight the need for stronger governance and ethical standards across the voluntary carbon market. • Collaboration — Developing joint solutions with governments, utilities, and technology partners - including renewable energy agreements and efficient hardware - to drive systemic progress and ensure sustainable AI infrastructure at scale. A legislative push towards sustainability The policy environment is rapidly evolving, with regulations like the Digital Operations Resilience Act and the Corporate Sustainability Reporting Directive mandating transparency on emissions and energy efficiency. Operators who fail to adapt risk falling behind, both in compliance and customer retention. Businesses increasingly prioritise sustainability, and carbon-conscious customers are gravitating towards providers with robust strategies for renewable energy adoption and operational efficiency. George Brown, Sustainability Researcher for Data Centres at CFP, comments, “The climate emergency is a clear signal for change, and we need sustainable solutions now. “While AI is driving innovation and is critical to our digital future, it - and the data centres that support it - must align with the environmental imperatives of the 21st century. "Data centres need to operate in a way that supports, rather than undermines, our environmental goals. Despite widespread net zero strategies, many data centres are failing to meet their targets. “At CFP Energy, we believe collaboration is key. Tech companies, governments, and energy providers must work together. Sustainable construction, advanced cooling, and voluntary carbon offsetting are essential. "Carbon credits are a temporary solution, but long-term investments in renewables and efficiency must accelerate. "Regulations are pushing for greater transparency and efficiency, and businesses that don’t adapt risk penalties and losing eco-conscious customers. AI’s growth must align with sustainability, and CFP Energy is committed to leading the transition. "Every stakeholder - governments, businesses, and consumers - must work together to ensure a sustainable digital landscape. Each has a role to play in ensuring that our digital future is also a sustainable one.”

DCNN supports new National Data Centre Day initiative

DCNN is proud to support the launch of National Data Centre Day, a new annual awareness initiative recognising the critical role that data centres play in powering the UK’s digital economy, public services, and AI-driven future. Taking place each year on 12 September, the day is set to commemorate the moment in 2021 when data centres were formally recognised by the UK Government as Critical National Infrastructure (CNI). This classification reflects their essential role in maintaining the digital systems and services that modern society relies on, from banking and healthcare to smart cities and generative AI. National Data Centre Day aims to celebrate the innovation, sustainability, and skilled people behind the industry, while encouraging greater awareness and engagement across the UK. As one of several industry supporters backing the campaign, DCNN encourages its readers, partners, and the wider community to learn more and get involved. Visit the website to find out how to take part.

Mitsubishi partners with Modius

Japanese multinational engineering company Mitsubishi Heavy Industries (MHI) has signed an agreement with US-based Modius to integrate its OpenData data centre infrastructure management (DCIM) platform with MHI’s power, cooling, and control technologies. The collaboration will focus on delivering a comprehensive offering for data centre energy management (DCEM) on a global scale. Modius’s OpenData DCIM software provides real-time visibility into critical infrastructure, supporting improved capacity planning, energy efficiency, and uptime. The platform has been deployed in over 250 sites worldwide and includes AI/ML-based analytics to support proactive maintenance and operational optimisation. The integration of Modius’s platform into MHI’s data centre portfolio seeks to enhance the company’s ability to offer customers real-time diagnostics, predictive insights, and greater control over facility performance. The OpenData AI/ML module is designed to recognise normal operational patterns and flag anomalies early, allowing data centre operators to "respond before issues escalate." “With the addition of the Modius DCIM platform to our digital portfolio, we can offer enhanced services to both existing and new customers seeking visibility and operational optimisation in next-generation data centres,” claims Shin Gomi, Senior General Manager, DCEM at MHI. “MHI remains committed to supporting sustainable and energy-efficient infrastructure.” Craig Compiano, President at Modius, adds, “MHI’s global presence and its alignment with our mission to drive efficiency, improve sustainability, and optimise performance in data centres make this collaboration a strong match. We look forward to working together to support facilities worldwide.”

Ex-Google Lauri Ikonen joins Polarnode

Polarnode, a Finnish data centre developer that focuses on environmentally sustainable data centre construction and operation, has announced the appointment of Lauri Ikonen as its new Head of Technology, effective from 1 September. The appointment comes as the company accelerates its growth strategy to aim to become a leading data centre platform across the Nordic region. Ikonen joins Polarnode at a time of increasing demand for data centre capacity across the Nordics. He brings more than two decades of experience in large-scale infrastructure, with a particular focus on mission-critical operations, backup power, and cooling technologies. From 2016 to 2023, Ikonen held a series of senior roles at Google’s data centre organisation, including Site Lead and Site Operations Manager at the company’s Hamina campus in Finland. During this period, the site expanded significantly, and daily operations grew to support approximately 400 personnel. More recently, he served as Chief Strategy and Operating Officer at UpCloud, where he was responsible for strategic management, operational oversight, and service reliability across 13 global data centre locations. His earlier career includes leadership roles in ABB’s Power Division, where he worked on industrial-scale infrastructure and service management. “We are thrilled to welcome Lauri to the team,” says Mikko Toivanen, Chair of the Board at Polarnode. “His deep experience in managing and scaling hyperscale data centre infrastructure will be instrumental as we accelerate our development strategy and respond to the growing market need for high-performance, sustainable, and resilient data centre capacity.” In his new role, Ikonen will lead Polarnode’s technology strategy and oversee the design and implementation of upcoming sites. He will also guide the company’s entry into colocation services, supporting its long-term ambition to deliver clean, high-performance infrastructure to support the growing digital economy. “The Nordic region is rapidly becoming a global hub for digital infrastructure,” comments Lauri. “Polarnode is well positioned to lead that transformation with its forward-thinking approach. I’m excited to contribute to its next phase of growth.” Polarnode is 100% Finnish-owned and has so far announced major data centre developments in Lappeenranta, Nokia, and Pori.

Aligned collaborates with Divcon for its Advanced Cooling Lab

Divcon Controls, a US provider of building management systems and electrical power monitoring systems for data centres and mission-critical facilities, has announced its role in the development of Aligned Data Centers’ new Advanced Cooling Lab in Phoenix, Arizona, where it served as the controls vendor for the facility. The project marks a step forward in the design and management of liquid-cooled infrastructure to support artificial intelligence (AI) and high-performance computing (HPC) workloads. The lab, which opened recently, is dedicated to testing advanced cooling methods for GPUs and AI accelerators. It reflects a growing need for more efficient thermal management as data centre density increases and energy requirements rise. “As the data centre landscape rapidly evolves to accommodate the immense power and cooling requirements of AI and HPC workloads, the complexities of managing mechanical systems in these environments are escalating,” says Kevin Timmons, Chief Executive Officer of Divcon Controls. “Our involvement with Aligned Data Centers' Advanced Cooling Lab has provided us with invaluable experience at the forefront of liquid cooling technology. "We are actively developing and deploying advanced control platforms that not only optimise the performance of these systems, but also contribute to long-term sustainability goals.” Divcon Controls has focused its work on managing the added complexity that liquid cooling introduces, including: • Precise thermal control — Managing coolant flow, temperature, and pressure to improve heat transfer efficiency and reduce energy consumption. • Integration with mechanical infrastructure — Coordinating the performance of pumps, heat exchangers, cooling distribution units (CDUs), and leak detection systems within a unified control framework. • Load-responsive adjustment — Adapting cooling output in real time to match fluctuating IT loads, helping maintain optimal operating conditions while limiting energy waste. • Visibility and predictive maintenance — Providing operators with detailed analytics on system performance to support proactive maintenance and longer equipment life. • Support for hybrid environments — Enabling the transition between air and liquid cooling within the same facility, as demonstrated at Aligned’s lab. As more facilities transition to hybrid and liquid-cooled architectures, Divcon Controls says it is focusing on delivering control systems that enhance energy efficiency, reduce operational risk, and ensure long-term asset reliability. “Our collaboration with industry leaders like Aligned Data Centers underscores our commitment to innovation and to solving the most pressing challenges in data centre infrastructure,” continues Kevin. “Divcon Controls is proud to be at the forefront of developing intelligent control platforms for the next generation of high-density, AI-powered data centres, with environmental performance front of mind.” For more from Aligned, click here.

GF introduces first-ever full-polymer Quick Connect Valve

The Quick Connect Valve 700 is a patented dual-ball valve engineered with the aim of enhancing safety, efficiency, and sustainability in Direct Liquid Cooling (DLC) systems. The company claims that, "as the first all-polymer quick connect valve for data centre applications, it is 50% lighter and facilitates 25% better flow compared to conventional metal alternatives while offering easy, ergonomic handling." As demand for high-density, high-performance computing grows, DLC is reportedly becoming a preferred method for thermal management in next-generation data centres. By transporting coolant directly to the chip, DLC can improve thermal efficiency compared to air-based methods. A key component in this setup is the Technology Cooling System (TCS), which distributes coolant from the Cooling Distribution Unit (CDU) to individual server racks. To support this shift, manufacturer of plastic piping systems, valves, and fittings GF has developed the Quick Connect Valve 700, a fully plastic, dual-ball valve engineered for direct-to-chip liquid cooling environments. Positioned at the interface between the main distribution system and server racks, the valve is intended to enable fast, safe, and durable coolant connections in mission-critical settings. Built on GF’s Ball Valve 546 Pro platform, the Quick Connect Valve 700 features two identical PVDF valve halves and a patented dual-interlock lever. This mechanism ensures the valve can only be decoupled when both sides are securely closed, aiming to minimise fluid loss and maximise operator safety during maintenance. Its two-handed operation further reduces the risk of accidental disconnection. The valve is made of corrosion-free polymer, which is over 50% lighter than metal alternatives and provides a UL 94 V-0 flammability rating. Combined with the ergonomic design of its interlocking mechanism, the valve is, according to the company, easy to handle during installation and operation. At the same time, its full-bore valve design seeks to ensure an optimal flow profile and a reduced pressure drop of up to 25% compared to similar metal products. The product has a minimum expected service life of 25 years. “With the Quick Connect Valve 700, we’ve created a critical link in the DLC cooling loop that’s not only lighter and safer, but more efficient,” claims Charles Freda, Global Head of Data Centers at GF. “This innovation builds on our long-standing thermoplastic expertise to help operators achieve the performance and uptime their mission-critical environments demand.” The Quick Connect Valve 700 has been assessed with an Environmental Product Declaration (EPD) according to ISO 14025 and EN 15804. An EPD is a standardised, third-party verified document that uses quantified data from Life Cycle Assessments to estimate environmental impacts and enable comparisons between similar products. For more from GF, click here.

Echelon announces €2bn for Spanish data centre construction

Echelon Data Centres, an Irish-owned developer and operator of large-scale data centre infrastructure, has announced the signing of a joint venture (JV) agreement with Iberdrola, a global renewable power producer, to build and operate data centres in Spain. Echelon’s major shareholder is Starwood Capital Group, a global private investment firm with approximately $115 billion (£85.72 billion) in assets under management in North America, Europe, and Asia. Driven by the growing demand for cloud and AI services, the agreement is intended to expand Echelon’s international data centre portfolio with 100% of its Spanish power infrastructure and energy supply needs provided by Iberdrola. Echelon will be responsible for the planning, design, commercialisation, and day-to-day management of the JV, while Iberdrola will source and secure suitable land plots with grid connectivity for data centre development, as well as ensuring a continuous 24/7 supply of clean energy. Echelon will own 80% of the JV, with Iberdrola owning the remaining 20% through its dedicated digital infrastructure subsidiary, CPD4Green. Echelon Data Centres has more than 600 MW of capacity either operational or in planning in Ireland and the UK. CPD4Green has already secured more than 700MW of power connections, including Tier-1 locations close to Madrid and in Aragon. The first of the JV projects to be constructed will be Madrid South, a 160,000m² campus, expected to reach ready for service by 2030. The site has already secured a power connection of nearly 230 MW. An on-site solar PV facility will supply the DC with renewable energy, complemented by additional clean energy capacity from Iberdrola. The alliance between Echelon and Iberdrola aims to enable renewable energy generation and infrastructure to realise a sustainable future for data centre development across Spain. The collaboration is underpinned by guarantees to generate and consume renewable energy to support the operation of the data centres on a long-term basis. These data centres will align with the sustainability targets of both Echelon Data Centres and Iberdrola while also aligning with the objectives of the EU’s Climate Neutral Data Centre Pact. Commenting on the new partnership, David Smith, Chief Investment Officer at Echelon Data Centres, says, “Entering the Spanish data centre market has been a strategic goal for Echelon for several years. "Spain has material benefits as a market for our customers: a supportive regulatory and policy environment, high-quality talent from both a construction and operational perspective, and access to some of Europe’s lowest price renewable energy, in scale. "Our partner, Iberdrola, is a world leader in building and operating generation assets and we are delighted to have this opportunity to partner together to deliver critical infrastructure for our customers.” David Mesonero Molina, Corporate Development Director of Iberdrola, adds, "This agreement reinforces Iberdrola's strategy of facilitating the development of data centres, which have already become a key vector for the growth in electricity demand. "The alliance signed with Echelon will allow us to value our portfolio of sites with access to electricity connection and our ability to offer these infrastructures safe, clean, and competitive energy 24 hours a day, 365 days a year." For more from Echelon Data Centres, click here.

Quantica launches to accelerate data centre site development

Quantica Infrastructure, a US-based company that develops integrated systems for clean energy infrastructure projects, has officially launched with the aim of streamlining data centre deployment across North America. The company says it focuses on delivering "shovel-ready" sites that combine access to renewable energy, traditional grid power, and robust network connectivity. By offering an integrated, pre-prepared model for data centre development, Quantica aims to reduce project risk, speed up delivery, and simplify logistics. The company also emphasises a holistic approach that accounts for both environmental and community benefits. Quantica is backed by the Energy Transition arm of EnCap Investments, a US-based private equity firm that has raised approximately $47 billion (£35 billion) in capital since its founding in 1988. Together, the two companies aim to address infrastructure constraints in a market where demand for data centre capacity is rapidly increasing. “Hyperscale and AI growth are demanding better solutions for power, land, and network connectivity,” says John Chesser, CEO and founder of Quantica Infrastructure. “Quantica unlocks new opportunities by delivering shovel-ready, network-ready sites with dedicated renewable energy and resilient power supplies, so our customers can focus on innovation, not infrastructure logistics.” Quantica’s leadership team includes professionals with experience across the energy, network, and data centre sectors. Collectively, they have delivered more than 15GW of energy projects, constructed large-scale data centre campuses in 22 US states, and developed regional and international networks for global technology clients. “Quantica’s platform is the solution needed to break through current barriers to AI and digital infrastructure expansion,” claims Jim Hughes, Managing Partner at EnCap. “It gives us the opportunity to invest across the full spectrum of digital infrastructure – from renewable power generation to real estate and network connectivity. We’re excited by Quantica’s project pipeline and the momentum behind digital infrastructure growth.”

Kao Data appoints new Chief Business Officer

Kao Data, a developer and operator of data centres engineered for AI and advanced computing, has announced that Clinton Hasell has been appointed as the company’s new Chief Business Officer. A seasoned, board-level executive with over 30 years of commercial and operational experience across the data centre, telecoms, and digital infrastructure sectors, Clinton has been named Chief Business Officer to spearhead the optimisation of Kao Data’s core business operations. This includes the key responsibility for the company’s technology deployments and enterprise-level reporting. Within his new role, Clinton will also lead the development function for Kao Data’s advanced infrastructure platform, aligning the organisation’s UK and European expansion plans. “I am excited to move into my new role as Chief Business Officer and to work together with both our C-Suite and our talented organisational teams to help drive the company’s growth objectives from inception to delivery,” comments Clinton Hasell, new Chief Business Officer, Kao Data. “Kao Data has established a market-leading position as a data centre developer and operator at the bleeding edge of AI deployment and it’s fitting we use the power of AI and advanced computing to deliver true business transformation.” “On behalf of the company and our board, I am delighted to welcome Clinton Hasell to the Senior Management Team as our new Chief Business Officer, and at a time of transformation and evolution for the company,” says David Bloom, founder and Executive Chairman, Kao Data. “Clinton has been a key part of our team for some time within a consultancy capacity, and it’s a fantastic endorsement of our future plans and ambitions that we have permanently secured his contribution as we develop new sites to scale our data centre platform across the UK and Europe.” Prior to joining Kao Data, Clinton was a member of the Global Switch management team where, as Executive Group Director, Europe, he was responsible for maximising profitable growth across its European division. He also held senior leadership roles at Interxion, from its $1 billion (£744 million) IPO in 2011 to its $8 billion (£5.95 billion) acquisition by Digital Realty Trust in 2020. For more from Kao Data, click here.

Whitepaper: Can AI solve the data centre energy paradox?

As the global demand for data continues to surge, data centres are rapidly scaling up, driven in large part by artificial intelligence (AI) and machine learning. Yet, whilst AI is accelerating innovation, it is also intensifying the energy challenge facing operators and infrastructure providers worldwide. In a new whitepaper from Hitachi Energy, the company explores this very paradox: can AI help to solve the sustainability and efficiency issues that it, in part, is responsible for creating? The technical brief, entitled Powering data centres sustainably in an AI world, delves into AI’s growing influence across the digital infrastructure sector, its impact on energy demand, and how it could enable a more efficient, sustainable future. In particular, it examines AI’s potential to optimise power consumption, streamline cooling strategies, and support smarter energy distribution across increasingly complex data centre estates. It also considers how AI can contribute to the broader clean energy transition, including integration with renewable energy sources and smarter grid interactions, among other key issues which are essential as the industry faces mounting pressure to align with global net zero goals. For data centre owners, operators, and energy stakeholders alike, the whitepaper offers timely insights into a future where AI could become both the driver and the solution for sustainable digital growth. You can read the full whitepaper here. For more from Hitachi, click here.