AI to trigger radical overhaul of data center electrification

As we enter 2025, the IT and data center industry remains latched onto generative AI. The influence of a single type of workload reshaping an entire industry is unprecedented. The closest comparison is Bitcoin, but this attracted specialist operators’ development of “shadow” facilities, rather than a transformation in mainstream data centers.

While some remain skeptical about the economic viability and utility of massive generative AI models, many see the past two years as just the beginning. For now, supersized generative AI models are here to stay, placing onerous demands on infrastructure — both in terms of IT and data center facilities. Initially, the industry focused on solving cooling issues, but the more pressing challenge for next-generation AI infrastructure will be power, forcing operators to explore new electrification architectures.