Global digitalization is advancing at an accelerated pace, driven by technologies such as cloud computing, artificial intelligence, the Internet of Things (IoT), and process automation. This exponential growth of data presents a major challenge: will large data centers be able to handle this entire load in a sustainable and efficient manner?

Although large data centers have become the backbone of the digital ecosystem, they face significant energy, operational, and environmental challenges that cast doubt on their ability to sustain global digitalization indefinitely. Let's explore the limitations of these giants, the resource consumption they require, the growing role of BRICS countries (Brazil, Russia, India, China, South Africa), and why a decentralized infrastructure could be the future of the industry.

Growth of Hyperscale Data Centers: How Far Can They Go?

Hyperscale data centers, operated by tech giants such as Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and Meta, have grown exponentially over the last decade. According to a report by Synergy Research Group, the number of large data centers surpassed 1,000 in early 2024, with an expected addition of 120 to 130 new facilities each year.

As digitalization progresses, the total capacity of data centers is expected to triple by 2030, largely due to the adoption of artificial intelligence and machine learning technologies, which require enormous processing power.

However, this growth comes at a cost: the physical infrastructure and the consumption of energy and water resources are reaching concerning and unsustainable limits.

The energy problem: Will there be enough electricity for everyone?

The rapid growth of data centers has raised concerns about their impact on global energy demand. According to Gartner, by 2027, energy consumption of AI-powered data centers will increase by 160%, and 40% of these centers could face operational limitations due to insufficient energy supply.

Current Consumption and Future Predictions

          In 2022, data centers worldwide consumed around 460 terawatt-hours (TWh),                         accounting for approximately 2% of global electricity consumption.

          It is estimated that by 2030, this consumption will triple, representing between 6%                 and 8% of total global electricity consumption.

          To put it into context, the data center sector will consume more energy than the                     United Kingdom, Germany, and France combined.

In addition to electricity consumption, data centers also generate massive heat waste, requiring the implementation of costly cooling systems that further increase energy expenditure. In some regions, restrictions on electricity supply have begun to slow down the expansion of these giants.

Energy scarcity in the Netherlands, a real example.

In Amsterdam, the rapid growth of data centers led the government to freeze the construction of new infrastructure in 2019 due to insufficient energy supply. Companies like Microsoft and Google had to rethink their expansion projects due to the lack of available electricity in the region.

In Amsterdam, the rapid growth of data centers led the government to freeze the construction of new infrastructure in 2019 due to insufficient energy supply. Companies like Microsoft and Google had to rethink their expansion projects due to the lack of available electricity in the region.

The water problem: Massive cooling and resource scarcity

In addition to their high energy consumption, hyperscale data centers require large amounts of water for cooling.

         A typical 100 MW data center can consume more than 1 million liters of water per               day to cool its servers..

         In dry regions or areas with water stress, this consumption competes directly with                water intended for human use and agriculture.

         In Aragón, the expansion of Amazon's data centers would imply an annual water                    consumption equivalent to that of a city with 20,300 households.

The growing need for water has led some governments to question the viability of continuing to build data centers in areas vulnerable to climate change.

The impact of the BRICS on the data center market and energy consumption

The BRICS countries (Brazil, Russia, India, China, and South Africa) are playing an increasingly important role in the global expansion of data centers, leading to a considerable increase in the demand for energy and resources.

Accelerated Growth of Digital Infrastructure in the BRICS

         China is making massive investments in data centers and renewable energy, leading             the digital development in Latin America and other regions.

         India is building new infrastructure to become a global digital hub, with massive                    investments in data centers.

         Brazil, Russia, and South Africa are gradually increasing their capacity, with                                investments in sustainable solutions.

Impact on global energy consumption

         According to the International Energy Agency (IEA), data centers consumed 460 TWh             in 2022, but this figure could exceed 1,000 TWh by 2026, with a significant portion of             the growth coming from the BRICS..

        The need for clean energy has led these nations to invest in 
renewable energy purchase agreements to reduce their environmental impact.

While the BRICS are contributing to digital growth, they are also significantly expanding resource consumption, which increases pressure on global energy infrastructures.

Decentralization as an alternative: Modular data centers and Edge Computing

Given that large data centers are reaching their sustainability limits, the decentralization of technological infrastructure emerges as a viable alternative for the future of digitalization.

Modular data centers and Edge Computing offer several advantages:

          Lower energy consumption: Up to 30% more efficient than hyperscale data centers.
          Strategic location: Closer to users, reducing latency.
          Less water dependency: Liquid cooling can reduce water consumption by up to                     90%.
          Greater adaptability: Modular and flexible expansion according to demand.

What lies ahead?

The uncontrolled growth of hyperscale data centers is not sustainable in the long term.

Market trends indicate that major operators will begin to diversify their infrastructures and opt for hybrid models that combine traditional data centers with Edge Computing and modular solutions.

Additionally, advancements in low-power chips, 5G networks, and distributed processing are expected to help mitigate the energy crisis in the sector. However, the key will be to find a balance between efficiency, sustainability, and infrastructure demand.

Digitalization is unstoppable, but relying solely on hyperscale data centers is not viable. It is time to rethink the model and build a more sustainable technological future.

Keep this in mind

Large data centers have been fundamental in digital transformation, but their unchecked growth is clashing with physical and environmental limits. The energy crisis, water scarcity, and the challenges in continuing to expand them cast doubt on their viability as the sole solution for global digitalization.

To ensure a sustainable technological future, it is crucial to adopt a more decentralized approach, supported by modular data centers, Edge Computing, and more efficient technologies.

The future of data cannot rely solely on energy-inefficient mega structures. It is time to innovate and build a balanced, efficient, and environmentally friendly digital infrastructure.