As Artificial Intelligence continues to chip away at the environment, next year, data centres will face a pivotal moment. Facilities will start to realise that there isn’t enough energy. Companies that were influenced by competitive urgency and rushed into AI, now face decisions regarding cost and sustainability of the technology. For example, some AI in-house setups cost upwards of $300,000 in hardware alone.
Check out the predictions below to learn about AI growth and sustainability. The predictions also cover data centre accountability, tech-savvy Gen Zs, the rise of AI agents, the role of digital twins in data centres and more. Entries are now open for the 2025 AI Awards. Check out all the award categories here.rr
Balancing AI Growth and Sustainability
– Mark Fenton, Product Engineering Director at Cadence
In 2025, data centres will face mounting pressure to reconcile AI’s surging energy requirements with strict sustainability goals, sparking an industry-wide rethink on AI applications. The infrastructure required to deliver on AI is poised to drive a 160% increase in data centre power demand. This challenge is creating a pivotal moment for data centres to support high-density compute loads while advancing their environmental commitments.
Companies will face a new crossroads. Many that initially rushed into AI, driven by competitive urgency, will now reevaluate its financial and energy impact, with some in-house setups costing up to $300,000 in hardware alone. This shift is likely to push organizations toward selective, high-value AI applications that provide stronger operational returns, including within data centres themselves. However, demand will still remain at a high level, stretching capacity to its limits. As such, tools like digital twins will be essential for data centres to meet AI goals sustainably, allowing operators to proactively manage power, integrate renewable sources, and optimize cooling measures to meet AI’s GPU usage demands. With these advancements, data centres can help organizations make AI investments both impactful and environmentally responsible.
Data Centers AI Era Revamp
– David King, Senior Principal Product Engineer, Cadence
Data centres will face a pivotal moment next year as energy usage, especially to power AI, continues to rise. Facilities will start to realize that there really isn’t enough energy. While newly built, AI-optimized facilities can be better suited to handle these requirements, retrofitting older data centres to support increased power as well as cooling is required to meet demands. However, it is costly and complex. This pressure is prompting operators to plan both infrastructure upgrades and invest in purpose-built facilities designed to power AI.
Amid these changes, digital twins will be crucial for enhancing data centre efficiency and sustainability in both new and existing data centres. By simulating physical facility environments, digital twins allow operators to optimize power distribution, improve cooling techniques, and test energy changes, helping to maximize resource use and reduce stranded capacity. This technology not only makes the most out of existing space, it also supports sustainable growth, setting a new standard for energy-efficient, AI-capable data centres.
EU’s 2025 Energy Efficiency Directive Will Prompt Data Center Accountability
– Mark Fenton, Product Engineering Director at Cadence
The EU Energy Efficiency Directive’s new reporting requirements, starting in May 2025, will mark a significant step in measuring energy and water usage within the data centre industry on a wide scale. By establishing initial data points, the directive will enable an ongoing comparison of industry performance, potentially paving the way for new regulations or targets that promote greater energy efficiency. The results will likely reveal a diverse landscape, where some companies, particularly within tech, show measurable progress, while others lag behind, exposing varying levels of commitment to environmental goals.
What’s more, with public interest in data centres’ resource use on the rise, these findings could invite heightened scrutiny, especially if data points to excessive energy consumption or local grid strain. This may lead to “naming and shaming” by the media, heightening societal pushback even further.
However, the EU’s transparency-driven approach and heightened scrutiny should encourage data centres to adopt greener practices and utilize tools like digital twins, both to meet compliance standards and mitigate public backlash. Ideally, this will set a new benchmark for sustainability and accountability across the sector.
Gen Z’s Purposeful Mindset Will Help Close the Skills Gap
– David King, Senior Principal Product Engineer, Cadence
From 2025 onwards, the data centre industry will see a substantial generational shift as seasoned professionals retire and younger, tech-savvy talent bring in specialized skills in AI, automation and sustainability.
Traditionally focused on physical infrastructure, data centre roles are evolving to require advanced technical skills like proficiency with simulation software such as digital twins. These tools are crucial in modern data centres for optimizing energy use, airflow, and resource allocation, marking a proactive shift toward efficiency and sustainability.
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