Data centers, power and how to be a winner in the AI Boom

Date:
Tue, 28 Jul 2026 13:43:38 +0000

Description:
The data center industry has found itself in unchartered waters recently. The boom in demand for AI products and services has led to a 17% increase in electricity consumption.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter The data center industry has found itself in unchartered waters recently. The boom in demand for AI tools and services has led to a 17% increase in electricity consumption. And despitea rapid decline in power consumption per AI task, energy consumption
is set to triplefor AI-focusedfacilities.

Recent industry research also reveals the average cost of unplanned downtime has climbed to $9,000 per minute, or $540,000 per hour. For large
enterprises, major outages can exceed $5 million per hour when all factors
are considered. Even more sobering: 60% of small and medium businesses that experience catastrophic data loss close within six months. Latest Videos From TechRadar Watch full video here: Billy Durie Social Links Navigation

Global Sector Head of Data Centres at Aggreko. For data centers, power is non-negotiable, and its clear that for those who can take control of their power supply, success in this AI boom can be achieved.

But the challenges are also clear. Europes existing, and ageing, grid infrastructure is becoming unreliable under the demandof data centers, renewables, and electric vehicles. You may like AI data centers are draining more power than the grid can provide AI boom triggers new battles over electricity infrastructure costs Why AI is re-designing data center architecture

Data centers will not always be the priority, but the need for consistent operations cannot falter. Not if businesses want to stay competitive in a crowd that is growing. The ripples of change The AI boom is redefining
success and failure within the energy sector. And the standout feature of the winners is the access to a reliable power supply. Bloom Energys 2026 power report, which looks at developments in the US data center market,indicatesa clear trend from areas where the grid is strained to those with amplesupply. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Traditional leaders are making way for the new, with data showing that areas like California,Oregon, Iowa, and Nebraska are set to lose up to 50% of their market share due to tighter power availability. Meanwhile Texas data center load is set tomore thandouble by2028. A reliable power supply is not only an advantage, but is king, when considering the construction of new facilities.

For nearly 20 years, Ive worked in the sector, on a variety of projects and continents. One Ive learnt is that the age-old idiom "when America sneezes, the world catches a cold is true. The lessons of this dramatic shift in the
US market should be understood and acted on by leaders in Europe sooner
rather than later.

And the question for European data center operators is obvious how can you stay take control of your own power availability and stay afloat? What to
read next Are we going to let data centers take all the power, water, and clean air? Why Australias data center boom is becoming a balancing act Report claims power demands may halt AI data center advances soon From dependence to independence The answer for many has been independence away from grid energy.Rooted in the need to avoid gridcapacity challenges and delays due to waiting lists, Blooms report indicates that up to a third of US data centers are expected to be fullyoff-gridby 2030. And this data on decentralization is growing. The IEA has observed a sharp increase in ordersforgas turbines, with the intention to power data centers directly, circumventing a grid
connection.

But this specific solution isnt without its drawbacks. For example, gas turbinesalonestruggleto support thelarge swings in demandthat are inducedby
AI training and modelling.

Increasingly, businesses are finding Battery Energy Storage Systems (BESS)are key to overcoming these sudden waves of demand.BESS can act as a buffer for the load swings AI produces when implemented as a supplementary power source. And the IEA forecasts that up to 25GW of battery storage could be installed
in data centers globally by 2030.

At Aggreko, were already deploying thisoptionfora number ofour partners
across Europe, ranging from 10MW all the way up to loadsin excess of100MW.
For example, whena major colocation provider in Dublinfound that they would not be able to connect their data center to the griduntil several months
after the site came online, we were called upon to bridge the gap in the meantime.

We supplied12 next-generation gas (NGG) generators totaling 14MWe, including 10kV of switchgears, transformers, and auxiliary equipment that allowed the siteto operate entirely independent of the grid. This was supportedby a 1MWBESS,providing resilience againstenergy swings with the added benefits ofimproved power quality, emission reduction, and fuel savings.As a result, the site was online right away,compared to the estimated two-year delay for a grid connection. Staying ahead of the curve The pace of development has been faster than anticipated for most operators, which has led to dramatic shifts in the way they approachpower and cooling.

So, secure your energy supply, start decentralizing, and stay on top of new technologies, such as BESS, and you might just find your company winning the AI boom. We've reviewed, rated, and ranked the best web hosting services . This article was produced as part of TechRadar Pro Perspectives , our channel to feature the best and brightest minds in the technology industry today.

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