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Data centres and energy demand: what decision-makers should watch

Briefing: The expansion of AI applications is significantly raising data centre power demand.

By the editors1 February 20246 min read

The expansion of AI applications is significantly raising data centre power demand.

For executives, the main question regarding “Data centres and energy demand” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?

A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.

Anyone looking into “Data centres and energy demand” quickly encounters a wealth of figures and opinions. For a sober assessment it pays to go to primary sources: official statistics, publications from the responsible authorities and companies' own reports.

The key is to separate short-term swings from structural developments. Individual monthly readings can be distorted by one-off effects; trends over several quarters are more telling.