Investments in data centers are expected to continue rising, with a forecasted 46% increase in global capacity over the next two years. This growth, driven by demand for AI and cloud services, will lead to capital expenditures exceeding $286 billion by 2027. However, these facilities face criticism for high energy consumption and water usage, as some AI-focused data centers consume electricity equivalent to 100,000 homes. Executives believe that this demand could facilitate a transition to renewable energy sources, despite near-term reliance on fossil fuels.
Worldwide data center capacity will increase by 46% over the next two years, equivalent to a jump of almost 21,000 megawatts, as demand surges.
Some AI-focused data centers consume as much electricity as 100,000 homes, raising concerns over energy consumption and strain on resources.
Data centers will need to be built near existing power plants powered by fossil fuels in the near-term, highlighting sustainability challenges.
Cutting the amount of energy needed to run data centers can lead to significant savings, suggesting a path toward more sustainable operations.
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