The industry must reinvent its infrastructure – making data centres both smarter and greener – to keep pace with surging AI, 5G and IoT demands, says Peter O’Brien, co-founder of Ventry Technologies. 

The commercial environment has made it clear; digital technology is evolving at a breathtaking pace. AI, machine learning, 5G networks, IoT, cloud platforms and big data analytics are no longer ‘emerging’, they’re embedded, and their impact on the data centre industry is both exciting and urgent.

These technologies are becoming more widespread and powerful, and they’re transforming how we live, work and connect. But behind the seamless experiences, automated logistics, instant translation and real-time analytics (which just about every industry relies on now), lies a physical infrastructure that’s feeling the strain. There’s a business case for more data centres to handle the load. And even more pressingly, existing data centres are being asked to do more, faster and with tighter energy and environmental constraints than ever before.

So how can we build data centres that are fit for the future; resilient, scalable and aligned with sustainability goals?

More data, more demands

AI and machine learning have become central to business strategy across sectors, from precision medicine to predictive maintenance. But these technologies don’t just use data. They devour it. Training a single large language model, for example, can consume as much energy as a household uses in several years.

Meanwhile, IoT sensors are streaming real-time data from millions of devices. The 5G rollout is unlocking low-latency applications that weren’t feasible before. Cloud-based platforms are standard. All this is generating a tidal wave of data that needs to be stored, processed and moved with minimal delay.

In short, the digital backbone of our world is under increasing pressure. And traditional models of data centre management are being pushed to their limits.

The energy equation 

Data centres already account for a significant share of global electricity usage, estimated at around 1–1.5% and expected to double by 2030, with the number expected to rise. In energy-intensive sectors like this, efficiency isn’t just a nice-to-have; it’s mission-critical.

In some countries, data centres are becoming massive political hot potatoes. Their contribution to economic growth is not in question. However, the strain they place on the electrical grid and their reliance on fossil fuels to run cannot be ignored.

There’s now a growing tension between supporting tech-driven innovation and reducing carbon footprints. The result is a clear industry imperative: we need to make data centres not just bigger, but smarter and greener.

That starts with understanding that energy savings aren’t just a matter of turning down the thermostat or swapping in LED lighting. They require more sophisticated approaches. In other words, solutions that can reduce energy use without compromising performance or reliability.

Engineering for ESG

We’re at a moment where environmental, social, and governance (ESG) expectations are being embedded into business strategy. Energy-intensive industries, data centres included, are under mounting pressure to report and reduce their environmental impact.

Thankfully, there’s growing interest in new ways to manage energy more intelligently. Data centre operators are under pressure to do more with less. This involves finding smarter ways to cut power use and keep things cool, without affecting performance or reliability.

The good news is, the tech is catching up. Advances in thermal management, predictive analytics, and automated load balancing are already helping to reduce energy consumption and bring down equipment temperatures. This is good for the planet, and it’s good for long-term resilience too.

The old quick fixes aren’t enough anymore. What’s needed now are smart, practical solutions that reduce energy use while keeping systems running smoothly and reliably.

Edge, cloud and complexity

Another big change we’re seeing is in how data centre infrastructure is set up and run. In the past, it was all about huge, centralised facilities handling everything. Now, it’s becoming much more distributed.

Edge computing is on the rise, with smaller facilities popping up closer to where the data is actually being used, whether that’s in a city, a factory, or even on a vehicle. The goal here is to cut down on latency and support real-time applications that just can’t wait.

Decentralisation could be part of the solution, but spreading things out comes with its own challenges. This is especially true when it comes to energy. Every site is different, and there is no one-size-fits-all approach that suits all data centres. Cooling, backup power and energy efficiency all need to be customised to fit the setup.

What happens next

The data centre industry stands at a crossroads. There is no doubt data centres are key to the unprecedented opportunity modern technology can unlock. However, there is a growing awareness that unchecked growth is unsustainable. This is indisputable no matter whether we’re looking at things through a financial, environmental or reputational lens.

As we look to the future, the path forward is clear: we must invest in infrastructure that can keep up with tomorrow’s digital demands, while actively reducing the footprint it leaves behind.

That means leaning into smarter cooling tech, automation, and energy solutions that are built to handle the demands of today’s high-density environments. It’s about getting ahead of problems, not just reacting to them. And it’s going to take real collaboration, between all stakeholders; engineers, designers,and solution providers, to make sustainability part of how we build and run data centres from the ground up.

Final thought

The data centre operators that act now, who take energy efficiency and sustainability seriously, will be the ones best positioned to support the next generation of digital innovation. And that, ultimately, is the mission we all share.