Opportunities vs risks – What will shape the data centre boom?
Driving demand, infrastructure challenges, and AI’s role in shaping the next wave of data centre growth
The data centre construction boom is set to continue. Work is spreading to Europe and Asia as cloud computing demand and AI adoption accelerates. Low-latency requirements and data security priorities are also driving demand for domestic capacity outside of the US.
Data centres require significant supporting infrastructure, spurring on construction activity and creating growth opportunities in adjacent sectors, notably electricity and water. Insufficient access to electricity and water is a key constraint to activity levels. Other downside risks to the boom include the ‘AI bubble’ bursting, chip supply constraints, competing military demand for chips in Europe, and labour shortages.
Pinpointing geographic hotspots; analysing sponsor–contractor networks to identify repeat partnerships and potential bottleneck risks; and assessing market restrictiveness for international firms can help inform business strategy and decision making.
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