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The challenge of data centres and power

Niru Brown April 24, 2025 High Tech Leave a Comment

With technology advancing at an astonishing rate, powering the world’s data centres is set to become more of a challenge. Let’s look at how data centres will cope with this need for extra power over the next five years.

Table of Contents

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  • How are data centres powered?
  • How much more power will be needed?
  • Why is AI draining our resources?
  • What does the future look like?

How are data centres powered?

Data centres’ power systems typically include multiple components but are usually made up of a combination of direct current power systems and alternating current systems. AC systems are predominantly sourced directly from the utility grid and converted to DC for distribution and IT equipment.

How much more power will be needed?

An annual usage of around 500TWh – terawatt hours – of electricity has been reported by data centres over the last few years, which constitutes between 2% and 3% of the world’s energy. To put this into perspective, this is the equivalent of the daily electricity consumption of no less than 28,500 households from developed countries.

Experts say that by 2030, this number could increase to a staggering 950TWh, or thereabouts, thanks to the significant development and use of intellectual AI technologies. This surge is likely to put pressure on the utility firms.

Why is AI draining our resources?

Reports have found that AI, or artificial intelligence, consumes lots of electricity because of the intense processes required for training systems and generating responses. These smart processes involve staggeringly large language models called LLMs and complex algorithms that eat up a lot of the energy.

With so many industries using a data analysis company such as https://shepper.com/ to support their work, plans need to be made to ensure data centres can access the power they need..

What does the future look like?

With AI continuing to drain our resources and driving up carbon emissions, we could face demand issues; what’s more, there is the possibility of blackouts if solutions are not found quickly.

The government is unlikely to allow this to happen, of course, so discussions have already started about ways to generate more electricity to keep up with this projected demand.

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Niru Brown

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