The rise of data centres has raised concerns about their environmental impact. While they consume a significant amount of energy, there are emerging solutions such as nuclear energy and heat recovery systems that offer long-term sustainability. Tech giants like Microsoft, Google, and Amazon have also invested in initiatives to reduce energy consumption in AI data centres. Companies like Eaton, Vertiv, and REITs like Digital Realty and Equinix play a crucial role in powering and maintaining these facilities.
OpenAI has suggested giving a portion of new compute to local public education in exchange for incentives and regulatory ease to build data centres. Siemens offers tailored project financing for data centres, and Atman, a Polish data centre operator, has pledged to offset 100% of its energy consumption with renewable sources. However, if data centre demand triples by 2035 and developers struggle to install new renewable energy sources, power sector emissions could be significantly higher than forecasted.
The growth of the data centre industry is driven by factors such as generative AI, which fuels investments in data centres, smart grids, and tech infrastructure. The funding for AI data centres not only benefits the data centre and investors but also promotes AI advancement and the growth of cutting-edge technology. India, with its growing startup ecosystem and technical advancements, has emerged as a prominent player in the IPO market, attracting international investors. The push for data localisation and cost efficiency has made it an attractive market for global data majors.
