The data center market has shown robust growth over the past five years, with significant increases in capacity and electricity usage. According to the International Energy Agency (IEA), global data center electricity consumption was approximately 460 TWh in 2022, and it is projected to rise to over 1,000 TWh by 2026. This growth is driven by the increasing demand for digital services and the expansion of artificial intelligence (AI) workloads.
In 2025, the total capacity demand for data centers is expected to reach 82 gigawatts (GW), with AI workloads accounting for 44 GW and non-AI workloads for 38 GW. By 2030, this demand is projected to increase to 219 GW, with AI workloads making up 156 GW. This significant growth underscores the importance of sustainable practices in the data center industry.
Alternative Off-Grid Power Sources
To meet the growing energy demands, data centers are increasingly turning to alternative off-grid power sources. These include solar power, wind turbines, micro-hydro power, and biogas generators. These renewable energy sources not only reduce the carbon footprint of data centers but also enhance their resilience by providing reliable power in remote locations.
Green hydrogen, produced by electrolysis using renewable energy, also offers a sustainable alternative to traditional cooling methods, with the potential to significantly reduce greenhouse gas emissions.
Continued Compute Growth and Liquid Cooling
The rapid growth in compute power, particularly with the introduction of platforms like Nvidia’s NVL-576 600 kW, has significant implications for data center cooling.
This platform, designed for high-performance AI workloads, requires advanced cooling solutions to manage the heat generated by such dense compute environments. Nvidia’s use of direct-to-chip liquid cooling and closed-loop systems has shown a 300x improvement in cooling efficiency.
Google’s fifth-generation cooling distribution unit (CDU), known as Project Deschutes, is another example of innovation in this space. This CDU sidecar power rack supports up to 1 MW per rack, leveraging high-voltage DC power distribution to enhance efficiency and cooling capacity.
Energy-Efficient Cooling Technologies
Energy-efficient cooling technologies are critical for the sustainable operation of data centers. Some of the most promising technologies include:
Direct-to-Chip Liquid Cooling: This method involves applying liquid coolants directly to the processors, providing superior heat dissipation and enabling servers to operate at optimal performance levels.
Hybrid Rear-Door Heat Exchangers: These systems combine air and liquid cooling to manage heat more efficiently, particularly in high-density rack environments.
Heat Reuse
Liquid cooling provides an additional opportunity to reduce energy consumption while enabling data centers to become contributors to community energy systems. Unlike traditional air cooling, which disperses heat into the atmosphere, liquid cooling captures heat more effectively, allowing the heat to be repurposed for the heating needs of nearby residential or commercial buildings. Heat pumps can be employed to raise the temperature of the excess heat to the temperature required by heating systems, resulting in greater energy efficiency.
The elevated temperatures produced by liquid cooling can also be harnessed in industrial processes that require specific heat levels, such as pasteurization, drying or chemical processing. By utilizing this heat, industries can reduce their reliance on external energy sources, which in turn lowers operational costs and emissions.
However, most areas in the U.S. lack the infrastructure to support district heating. Significant investment is required to develop the infrastructure needed to transport and utilize the heat, such as pipelines for district heating or retrofitting industrial processes. Depending on the region, there may also be legal or regulatory barriers to overcome.
Policy and Community Engagement
Within the current U.S. administration, there is strong support for AI development, with partnerships involving companies like OpenAI and Meta. OpenAI, Meta, SoftBank and Oracle have joined forces for the Stargate Project, which aims to build AI data centers in the U.S.
This project includes significant investments to create infrastructure that supports AI development. The Trump administration has identified 16 sites on federal land for the development of AI data centers. These centers are intended to provide the necessary processing capacity for machine learning, cloud storage, and AI systems.
Heat reuse offers a powerful tool for sustainability and community engagement. By capturing and repurposing the waste heat, data centers can significantly reduce their environmental impact while providing tangible benefits to surrounding communities and industries. This approach not only supports decarbonization efforts but also fosters stronger ties between data centers and the communities they serve, creating a more sustainable and resilient future.
Benefits and integration of data centers
Educating the community about the benefits of data centers is crucial to ensure the successful integration of data centers into local communities. Data centers support local economies by creating jobs, providing reliable internet services, and enabling technological advancements that improve quality of life.
By highlighting these benefits, data centers can build stronger community support and enhance their social license to operate. The effort should combine outreach with online educational initiatives, collaborations with industry, academia, NGOs and multiple sources of in-the-field insight.
Conclusion
The data center market is poised for continued growth, driven by advancements in technology and increasing demand for digital services.
By focusing on sustainability, heat reuse, and energy-efficient cooling technologies, the industry can meet this demand while minimizing its environmental impact. Engaging with communities and educating them about the benefits of data centers will further support the sustainable growth of this vital industry.
Boykin Air 