In 2021, iMasons reported there were seven million data center locations around the world. Each of these data center locations has a unique street address and ranges in size from hyperscale data centers with more than 1GW of power capacity to micro edge deployments on street corners that draw less than 10kW of power. In total, they represented 105GW of built power capacity in 2021 and an annual electricity consumption of 594TWh. This electricity consumption represented 2.4 percent of global electricity draw that year, which was more than the electricity consumed in the United Kingdom. These figures served as the baseline measure for the size of the digital infrastructure industry in the SOTI. The report also contains the consensus forecast that the digital infrastructure industry will double and possibly triple in size over the next 10 years with 38GW of new capacity required for generative AI alone by 2028. Total power consumption by data centers could double by 2026 to more than 1,000TWh, according to forecasts from the International Energy Agency.
As I stepped into the Chief Executive Officer role for iMasons this July, our industry partner DC Byte reported that more than 31GW of additional capacity have been added to the development pipeline since we locked the capacity figures for the SOTI report on September 30, 2023. This pace of development blows past the most aggressive growth forecasts for our industry. Much of the recent pipeline growth, more than 20GW, is in North America, where several hyperscalers have announced AI and machine learning data center campuses that are planned to exceed 1GW in power capacity. We’re also seeing accelerated growth in the Asia Pacific region, with more than 8.7GW of new power capacity added to the pipeline since the first of the year, according to DC Byte. There’s also been about 3GW of growth across Europe, Africa, and the Middle East.
Advances in AI are the primary driver of the recent accelerated growth in data center capacity, which is in turn impacting data center design, location, and use. For example, data center campuses dedicated to large language model training have less latency constraints than data centers dedicated to cloud computing—and thus have greater flexibility to locate in regions that are prioritized for abundant clean power rather than access to population centers. On the other hand, most AI-inferencing applications are latency sensitive and will require a proliferation of edge data center deployments throughout cities and towns. This AI-fueled growth is also an opportunity for any town with available powered land to attract data center developers. Today’s power constrained markets could see migration of new developments to these regions. Data privacy concerns will also drive localized data center growth on every continent, as will the need for AI inferencing close to where digital consumers live.
The biggest growth potential is in the emerging markets of Africa, Latin America, and India. They are home to 44 percent of the world’s population, yet today account for just five percent of the global live data center capacity. Projects in the pipeline are on pace to quintuple capacity in these markets over the next five years. I’ve seen this potential first-hand. Prior to joining iMasons, I was CEO of KIO Networks Data Centers, a developer of carrier neutral and wholesale colocation data centers in Latin America where the gap between dense populations with high GDP and digital infrastructure is disproportionate relative to developed markets in North America and Europe. There’s a strong appetite for digital infrastructure investment in the emerging markets and room for digital infrastructure development. This gap is already driving interest from international players looking to expand. Throughout these next few months of 2024, iMasons will release updates from the report and insights on the opportunities around the explosive growth of digital infrastructure development in Africa, Latin America, and India.
The challenge for iMasons around the world is to meet this unprecedented demand for digital infrastructure in the face of global power constraints, lack of skilled people to work in the industry, and a need to improve the perception of the data center industry all while maintaining our collective commitment to protect the planet. We at iMasons are focused on overcoming these challenges and have continued to make strides to address them since the SOTI was released. In the months and years ahead, we plan to drive responsible deployment of digital infrastructure. We see our industry aligning with this concept. How quickly our industry can meet the demand for digital infrastructure will depend on where and when the pieces to the puzzle of responsible development are in place. One thing is certain: This industry is on a non-stop train. It could slow down, but it will not stop completely since the majority of the things we do and produce in our daily lives rely on the digital infrastructure that supports the digital economy. Where the train goes depends on the availability of resources and willingness of communities to work with our industry on development that achieves economic, social, and ecological balance. If there is a community that is better prepared and has the resources, the train will head in that direction. Conversely, our industry must understand and adapt to the unique local needs of those who live and work where digital infrastructure is deployed.
iMasons’ mission is to unite digital infrastructure professionals, organizations, companies, communities, and other stakeholders under a neutral global platform and forum to address and overcome common challenges as well as to build a greater digital future for all. Our goal is for responsible and sustainable integration of digital infrastructure within the communities where we live and work. This integration requires our industry to move beyond building and operating infrastructure that’s “in the community” to being “of the community.” Being “of the community” is at the core of our new initiative, The Social Accord, which advocates for building and operating digital infrastructure that’s in balance with the economic, social, and ecological dimensions of the communities where digital infrastructure is deployed. We would like to hear your voice and engage every stakeholder in this effort. Learn more at: socialaccord.org.
