Managing the 2025 in-tray for data centre operators in a digital-first world

Data centres are the new foundation of global growth. The billions being invested in them is driving rapid advancements in transformative technologies, such as artificial intelligence (AI), which are reshaping digital infrastructure for both businesses and governments. 

While this is positive for the global economy, it brings a shifting set of core challenges for data centre operators. Ensuring reliable access to power, adapting to rising demands, meeting evolving regulatory expectations and scaling sustainably are no longer optional. They are essential to keeping pace with demand and supporting the infrastructure that underpins digital growth. 

Overcoming limitations: grid capacity 

The surge in digital transformation across the globe has necessitated the demand for more data centre capacity. In Q1 of 2024, the European data centre market experienced nearly 20% year-over-year growth, which resulted in new distributed regional clusters and data centre designs to support the need for reduced latency and improved resilience. 

But progress is being slowed by lengthy permitting processes and increasingly limited power availability in key regions. Operators are finding that power availability, including renewable energy sources, is becoming a critical factor influencing where and how facilities are built. Additionally, existing data centre upgrades (brownfield environments), which are required to handle load increases resulting from AI, will only exacerbate to the power dilemma facing our industry. 

To meet rising demand, operators must work more closely with governments and local jurisdictions to simplify permitting processes. Such efforts will help operators meet capacity needs without unnecessary delays. By proactively engaging with the wider ecosystem, operators can address power constraints and lay the groundwork for sustained growth.

Collaborating for progress

Operators must also collaborate with utility providers to develop strategies that ensure power availability and the building of the critical infrastructure. Many data centre operators are already looking to add on-site renewable systems, such as solar, wind and hydrogen, over the next year. This will help to ensure uninterrupted operations and reduce dependence on external grids. But the addition of on-site power generation also means data centres can play a central role in boosting the stability of the grid. 

Through innovative approaches and technologies, data centres can partner with the grid, to both consume and supply power. For instance, operators can now take advantage of demand response technology – such as peak shaving, battery energy storage systems (BESS), on-site renewable energy generation and load shifting – to enhance grid interactivity. 

Addressing power density with innovation

By 2030, AI is expected to contribute to a 160% increase in power demand, accounting for 75% of all data centre energy usage. This surge requires operators to evaluate whether their existing data centre infrastructure is sufficiently equipped to deliver operational reliability. 

For example, operators must evaluate how to incorporate advanced cooling strategies. Such as two-phase immersion and direct-to-chip cooling, which will become essential for managing heat, while delivering operational efficiency. At the same time, higher-voltage switchgear systems, such as SF6-free 36 kV configurations, should be introduced to support these growing power demands. Over the next year, close collaboration between operators and technology providers will be essential to ensure reliability and deployment speed are not sacrificed.

Keeping up with regulatory changes 

Regulations will introduce new challenges for operators. Whether it’s a response to the growing adoption of emerging technologies, such as AI and cross-border data transfer processes, or initiatives like the EU Green Deal and the Carbon Border Adjustment Mechanism (CBAM), regulations are demanding greater compliance, with more detailed carbon emission reporting and renewable energy integration. These changes mean operators will need to prioritise engagement with regulators, in order to adapt quickly to avoid falling behind.

Regionally, the picture varies widely. The Nordics, with their renewable energy and favourable policies, continue to attract investments, while stricter energy limits in countries like China require innovative approaches to stay compliant. Operators will need to stay ahead by working closely with regulators and adjusting their strategies based on regional demands.

The growth of modular data centres

Data centre operators are under pressure to quickly add capacity to meet the demand of advanced technologies.  Modular and containerised data centres are a clear solution to add capacity and meet demand, as they can scale quickly, adapt to regional needs and reduce the need for on-site skilled labour.  

By utilising pre-engineered modules, data centres can be rapidly deployed, significantly shortening the engineering time required for each site. This approach not only accelerates the deployment process but also ensures consistency and reliability across multiple locations. Moreover, operators can plan their growth strategies with confidence, knowing that each additional module will seamlessly integrate with the existing infrastructure as per the original design, delivering precise capacity increases.

Managing the 2025 in-tray

Meeting demand – while also achieving growth – in 2025 will require careful orchestration from data centre operators. Addressing capacity issues, innovating to overcome power density needs, navigating energy volatility and meeting regulatory requirements will all demand focused, short-term action. 

It’s clear, however, that the future of data centres lies in collaboration, adaptability and innovation – key components for success in an increasingly complex and dynamic landscape. By adopting modular solutions, advanced cooling, renewable energy and proactive regulatory practices, operators can maintain competitive edge in 2025 and beyond.