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Solving the AI energy puzzle in data centres

Voice and Data

|

March 2025

GenAI’s soaring power needs are pushing data centres to the limit, driving a shift to on-device AI processing for efficiency, speed, and sustainability.

- MENGLIN CAO

Solving the AI energy puzzle in data centres

The rapid expansion of generative Artificial Intelligence (GenAI) and large language models (LLMs) has led to an unprecedented demand for computing power. As these AI models grow in complexity, the energy required to support them significantly strains data centres. Gartner estimates that the power required for data centres to run incremental AI-optimised servers will reach 500 terawatt-hours (TWh) per year in 2027, more than double the levels seen in 2023. This escalating GenAI power demand poses substantial challenges for data centre operations, affecting cost, performance, and sustainability.

Gartner forecasts that by 2027, nearly 40% of existing AI data centres will face operational constraints due to power availability. This situation impacts the data centres themselves and has downstream effects on their customers and end users, who may experience increased costs and reduced performance.

This escalating GenAl power demand poses substantial challenges for data centre operations, affecting cost, performance, and sustainability. The rising power needs of GenAI are creating major constraints for IT organisations, restricting their ability to deploy GenAI-related products and applications.

The increasing power requirements for GenAI are also becoming a critical constraint for IT organisations, limiting their ability to deploy GenAI-related products and applications.

SHIFT TO ON-DEVICE GENAI PROCESSING

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