Data centers are now receiving more investment than new oil supplies, with global spending projected to reach $580 billion this year. A report by the International Energy Agency highlights the growing importance of data centers in modern economies. The energy demand from AI data centers is expected to increase fivefold by the end of the decade, far outpacing conventional data centers. The U.S. is anticipated to account for half of this demand growth, with Europe and China following closely. Large cities with over a million residents are leading the development of new data centers, often built near existing facilities. This article by Tim De Chant is worth reading because it provides insights into the economic and energy implications of data center expansion. Readers will learn about the scale of investment, energy consumption trends, and the challenges facing the grid infrastructure.
Key facts
- Global investment in data centers is projected to reach $580 billion this year, surpassing the amount spent on new oil supplies.
- AI data centers are expected to consume five times more electricity by the end of the decade, compared to current levels.
- The U.S. is expected to account for half of the projected demand growth for data, centers over the next decade.
- Most new data centers are being developed in large cities with populations exceeding one million people.
- The International Energy Agency warns of grid congestion and long connection queues as data centers expand rapidly.
