The demand for data centres is escalating as AI technology advances, creating significant energy challenges.
- Glasgow-founded Iomart identifies increased power needs as the industry’s primary challenge.
- Despite early AI hype, substantial impact on cloud storage demands has emerged in recent years.
- The UK’s support for data infrastructure is evidenced by significant investments from US tech firms.
- Access to an enhanced power supply remains a critical issue for data centre expansion.
A surge in data centre demand, driven by advancements in artificial intelligence (AI), has been acknowledged by Glasgow-founded cloud solutions provider Iomart as a significant challenge due to increased energy requirements. Despite AI’s early hype, Iomart CEO Lucy Dimes notes a tangible impact over the past year as the industry tries to meet the growing cloud storage needs.
Lucy Dimes explained that although AI technologies began gaining attention in 2022, the real influence on cloud data services has only been noticeable recently, marking a monetizable opportunity now being realised by Iomart, established in 1998 and publicly traded in London since 2000. Iomart’s capacity to accommodate growing demand highlights a broader issue confronting the sector: soaring energy requirements perceived as the main limiting factor in future scaling efforts.
Dimes articulated that the core challenge facing Iomart and the wider industry is the heightened energy demands of data centres. She expressed concern over how the sector can manage increasing power needs effectively should demand continue to rise unpredictably. The UK’s recent positioning as a robust supporter of technological infrastructure, bolstered by over £25bn in private sector investments since July, underscores the urgency of addressing these issues. Technology Secretary Peter Kyle termed this investment a ‘vote of confidence’ in Britain’s economic strategy.
However, tapping into the necessary power supply for these data centres poses a persistent challenge. As Dimes pointed out, securing more energy is not as simple as connecting to the grid. It requires substantial planning and coordination with energy suppliers to ensure data centres are equipped for higher power outputs. Iomart’s half-year report highlighted a stagnant revenue of £62 million, but a notable 77% drop in pre-tax profit to £1 million due to these energy challenges. Despite this, the acquisition of Atech for £57 million has reinforced Dimes’ optimistic outlook for the latter half of the year, suggesting improved performance through strategic partnerships. With Iomart shares slightly dipping, the focus remains on adapting to energy needs.
Navigating rising energy demands will be vital for data centres to sustain future growth in the evolving tech landscape.
