The Cooling Conundrum: AI and Automation Push Data Centers Toward 3X Energy Growth by 2030

Digitalization, Artificial Intelligence (AI), and automation are intensifying demands on data center (DC) IT infrastructure, driving the need for effective cooling solutions. Rising computing power generates more heat, which in turn necessitates substantial increases in cooling capacity to maintain performance, stability, and equipment lifespan. According to global technology intelligence firm ABI Research, the number of data centers worldwide will surge from 10,978 in 2023 to more than double by 2030. In 2023, DC operators consumed 300 TWh of energy for cooling alone, a figure projected to increase threefold by 2030, with a Compound Annual Growth Rate (CAGR) of 15%. This forecast underscores the significant challenges in powering and cooling new and existing data infrastructure.

The recent rejection of Google’s data center in Dublin and regulatory actions in Germany highlight the mounting energy and sustainability challenges posed by data centers, underscoring the urgent need for renewable and carbon-free energy sources as well as regulations addressing energy, water, physical space, and carbon emissions to mitigate DC impacts. “Cooling load alone accounts for up to 40% of a data center’s energy consumption. Effective cooling strategies demand a holistic, technology-agnostic approach to optimize Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), thermal management and reduce operating costs. With energy-intensive AI data centers, operators are under growing regulatory pressure to adopt responsible computing practices, assess environmental impact, and leverage renewable energy,” explains Rithika Thomas, Senior Analyst for Sustainable Technologies at ABI Research.

Regulations such as the Energy Efficiency Directive (EED), the European Code of Conduct for Data Centers (EU DC CoC), ASHRAE, ISO 50001 Energy Management Systems, and Singapore Standard for Green Data Centers are pressuring DC operators to regulate energy and water, and carbon footprints. According to Thomas, “Cooling costs are a significant overhead cost operators must face. A ‘one size fits all’ approach fails to factor in the impact of size, location, infrastructure needs, cost, local regulations, and workloads, all vital to design an efficient cooling solution.” 

To stay ahead, DC operators are adopting hybrid and modular cooling technologies on an infrastructure level with solutions from Carrier Global Corporation, Danfoss, Daikin, Johnson Control, Rittal, Schneider Electric, STULZ GMBH, Trane, and Vertiv, to name a few, combined with equipment level liquid or immersion cooling solutions from Green Revolution Cooling, Iceotope, LiquidStack, or Submer. Today's data center cooling solutions offer high hardware efficiency, AI-driven monitoring, predictive maintenance, and seamless integration with DCIM/BAS systems to extend IT equipment lifespan and reduce energy use. Lower operating costs, environmental impact reporting, carbon reduction, and efficient cooling are now essential for sustainable DC growth in the coming years,” Thomas concludes.

These findings are from ABI Research’s Strategic Cooling Technologies for Green and Efficient Data Center Operations report. This report is part of the company’s Smart Buildings research service, which includes research, data, and ABI Insights.