There has been much in the news recently about how artificial intelligence (AI) is being integrated into many different industries and is reshaping the way we live and work. Data centres have a crucial role to play in powering AI technologies, and this has triggered an unprecedented demand for data centre capacity. But with this growth come some big challenges, especially when it comes to power consumption and scalability.
How AI is revolutionising data centres - and the challenges ahead
Posted on in News
Data centres for AI
AI and the growing demand for data centres
The increasing adoption of AI globally is driving demand for the infrastructure required to power this technology, particularly the demand for high-performance computing (HPC) resources.
This is particularly important for the UK, which is currently ranked as the fourth-largest AI market in the world (according to the Social Market Foundation – a cross-party think-tank). Prime Minister Keir Starmer has recently pledged to fully support the growth of AI, adopting every recommendation in the ‘AI Opportunities Action Plan’ devised by Matt Clifford, his AI advisor.
According to the Prime Minister, the UK cannot afford to fall behind, saying:
“We stand at a crossroads. Countries that embrace the possibility of the Artificial Intelligence (AI) revolution will reap the benefits. Those that shy away, or join in reluctantly, will lag behind.”
AI technology requires vast computational power and data processing capabilities which, in turn, is increasing energy demand. According to the International Energy Agency, global data centre electricity consumption in 2022 accounted for around 1% to 1.3% of global final electricity demand. In all likelihood this is going to increase in light of the surge in the uptake of AI technologies, which will put more stress on power grids.
Sustaining the UK's position as an AI leader
According to the Social Market Foundation, energy prices and planning challenges could threaten the UK’s position as a world leader in AI, essentially because energy costs are holding back data centre construction ambitions.
Challenge 1: Power constraints and the future of expansion
The surge in energy usage creates challenges for scaling data centres, particularly in areas where the power grid is already stretched to its limits. Many established data centre hubs are in heavily populated regions (e.g. London) and competing demands on energy infrastructure are restricting data centre growth. Some major markets have even imposed restrictions on new data centre developments simply because the grid can’t cope. This, combined with the high prices of industrial electricity in the UK, means that the UK risks losing its most promising startups, scaleups, and researchers to countries that can offer better resources unless action is taken.
Challenge 2: Planning for new data centres
To maintain the UK’s position as a global AI leader, data centre capacity will need to be expanded in order for the UK to remain competitive. And this growth needs to be achieved sustainably. We know from experience of constructing our own data centre facilities that securing planning permission for data centres can be challenging, but that it is more than achievable so long as consideration is given to all the important factors, not least environmental impact, setting and achieving sustainability targets, ensuring a resilient power supply (prioritising renewable energy), selecting locations with robust connectivity, and gaining the support of the local community.
The path forward
We recognised the growing demand for sustainable, enterprise grade data centre infrastructure within Manchester’s thriving tech hub, so we embarked on the development of MCR2, an enterprise grade and sustainable data centre located in Wythenshawe as part of the area’s regeneration project. MCR2 will be going live in Q2 2025 and will boost the region’s capacity to drive economic innovation and growth. Meanwhile, planning permission has been granted for FRN2, a brand new data centre adjacent to our flagship Farnborough facility on the government-grade Cody Technology Park.
Are you looking to expand your data centre footprint to support your growing business? We offer two state-of-the-art data centre facilities – London Edge and Manchester – designed to meet your evolving needs. Get in touch with a member of our team today to discuss your requirements and find the perfect solution for your business.