Urgent Need for Greener Data Centers as AI Drives Data Center Energy Consumption to 2,477 TWh by 2030

The growth of data centers is compounding due to changing digital habits, increased adoption of cloud-based services, Artificial Intelligence (AI), Machine Learning (ML), and cryptocurrency trends as tools businesses use to increase profits and reduce operating costs. According to global technology intelligence firm ABI Research, the number of Data Centers (DCs) is expected to reach over 24,000 sites by 2030, with a Compound Annual Growth Rate (CAGR) of 12%.  

Currently, businesses are increasingly turning to Generative AI to optimize processes. AI applications and training models are estimated to use 10-20% of the data center electricity today, a critical concern for grid infrastructure. The resultant rapid need and expansion of the data center sector is posing an increased energy demand challenge to the grid, projected to reach 2,477 Terawatt Hours (TWH) by 2030. “Compute power of power-hungry GPUs and cooling are the most energy-intensive processes within the data center, amounting to 80% of the energy demand. Integrating new retrofit technology into existing data center infrastructure and responsible compute are critical to reduce demand on the grid, restrain the surge in energy demand, and limit Scope 1-3 emissions,” explains Rithika Thomas, Sustainable Technologies Senior Analyst at ABI Research. 

Greening data centers is crucial for sustainable digital transformation, supporting climate change mitigation and adaptation efforts. By reducing the environmental footprint of data centers, countries can lower emissions and meet sustainability goals. Governments play a vital role in creating and enabling green data centers through policies, incentives, and regulations. Thomas states, “By establishing green building standards, incentivizing the use of renewable energy sources, regulating the use of cooling refrigerants, and supporting efficient e-waste management practices, governments are pushing the concept of sustainable data centers to optimize operations, reduce costs, and mitigate climate risk.”

Data center operators are actively implementing various strategies to power up and stabilize the grid, address the environment, strengthen ESG performance, reduce carbon footprints, and promote environmental sustainability. "Achieving Net Zero for data centers is a continuous journey rather than a final destination. Forward-thinking operators must use industry-specific sustainability frameworks to monitor metrics, adhere to climate goals, and meet new strategic business needs while maintaining profitability," Thomas concludes.

Emerging technologies and strategies encompass onsite microgrids, PPE and load shifting, efficient power and airflow management techniques, infrastructure virtualization, asset lifecycle management, heat recovery, and responsible compute. Hyperscalers such as  Google, Microsoft, Intel, Meta, and Amazon are actively working with data center and utility operators like Equinix, Schneider Electric, Johnson Controls, Danfoss, and Siemens to improve operations today and pave the way for responsible consumption in the days to come. 

These findings are from ABI Research’s Building Greener Data Centers to Minimize AI's Carbon Footprint report. This report is part of the company’s AI & Machine Learning and Smart Buildings research services, which include research, data, and ABI Insights.