Currently supplied via a mix of legacy fossil fuel and renewable sources, the ‘round-the-clock’ energy demand is set to grow dramatically. The International Energy Agency estimates that data centres’ total electricity consumption could double from 2022 levels to 1,000TWh (terawatt hours) in 2026, approximately Japan’s current total level of electricity demand.

This demand for energy resources comes at a pivotal time as the sector’s widening carbon footprint raises questions on whether “Big Tech’s” plans to invest heavily in artificial intelligence products undermines their goals to reduce carbon emissions. 

Demand for digital services from hyperscale clients – the world’s biggest technology companies – is growing at double digit annual growth rates, prompting them to build data centres near power transmission grids.

However, some governments have felt compelled to slow down expansion. In Ireland, the local planning authority was forced to halt new construction in the greater Dublin area in 2021 while Netherlands also temporarily halted the construction of new data centres in 2019.

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