As generative AI transforms industries, data centres - the infrastructure powering this shift - are becoming central to global economies. “AI is the new oil, and data centres are the refineries,” said Craig Eadie, Managing Director of Straightline Consulting.
AI’s projected boost to GDP, up to 15 percent in industrialised nations over the next decade, is intensifying demand for compute power. Tools like Google’s Veo 3 demonstrate AI’s scale and ambition, but behind every model lies a vast digital infrastructure. Goldman Sachs forecasts global data centre power demand will grow 50 percent by 2027 and could rise 165 percent by 2030. Eadie expects half of that energy to be AI-related by 2025.
This growth is reshaping the data centre sector, accelerating innovation in construction, commissioning and design. Yet power access remains a critical constraint. The UK and EU are taking steps via AI Growth Zones and the AI Continent Plan, but local resistance and complex approvals pose barriers. Cities like Dublin and Amsterdam have already limited new projects due to grid strain and water use.
The United States, by contrast, offers faster deployment, raising concerns over data sovereignty. Bain & Company projects US power generation must increase by 26 percent by 2028 to meet AI demand, likely raising consumer energy bills.
Meanwhile, supply chains for key materials remain disrupted, inflating costs and delaying builds. The sector also faces a commissioning talent shortage, with Eadie calling it a generational crisis due to the specialised expertise required.
Geopolitically, where AI infrastructure is built matters. Hosting data centres offers economic and technological advantages but brings risks over sensitive data and national security. Countries leading in AI capacity gain strategic leverage in the global digital economy.
Investment is surging. Blackstone and the Canada Pension Plan recently acquired AirTrunk for $16 billion, betting on sustained demand. But the energy intensity of hyperscale data centres raises sustainability concerns. In the US, data centre electricity use could triple to 390 terawatt-hours by 2030, straining grids and increasing pressure on supplies of lithium, copper and uranium.
The UK and Europe face a clear inflection point. Without swift reforms to power infrastructure, planning policy, supply chains and skills pipelines, they risk losing ground in a strategically vital sector. Addressing these challenges with urgency could position the UK as a leader in sustainable AI, fuelling a future-ready digital economy.
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