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Data centers are facing unprecedented energy challenges as the adoption of artificial intelligence accelerates. The sector’s energy demand is expected to double by 2026, paralleling Japan’s entire electricity consumption, according to the International Energy Agency. Compounding the energy squeeze, regulatory pressures are mounting globally, with governments scrutinising the environmental impact of these facilities.
The energy-intensive nature of data centers presents both challenges and opportunities. While older facilities often rely on fossil fuels, advancements in power usage effectiveness (PUE) and renewable energy sources offer pathways to mitigate environmental impact. Simultaneously, investments in technologies like nuclear energy and hydrogen fuel cells, as well as solutions from companies like Schneider Electric and Eaton, are transforming how data centers operate.
Institutional investors must navigate these risks while evaluating opportunities in renewable energy procurement, efficiency technologies, and innovative cooling systems to ensure data centers remain viable and sustainable. They must consider how new energy sources, advanced infrastructure designs, and stricter regulatory frameworks will shape the sector’s future.
Dive deeper into these dynamics by downloading the full article to explore how data centers are addressing their environmental footprint in an era of exponential digital growth.
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