• • • DATA CENTRES • • • 3 Key Takeaways from the
Global Data Centre Index 2025 The world’s digital economy continues to expand at pace, but beneath the headlines about artificial intelligence and cloud growth lies a more complex story
By DC Byte D
ata centres, which are the critical infrastructure powering this transformation, are at a pivotal point. Our
‘Global Data Centre Index 2025,’ reveals three powerful themes shaping the industry: a mounting delivery gap, the continued dominance of cloud and the rise of new hyperscale frontiers.
1. The global data centre gridlock In 2024, global demand for data centre capacity surged by 30 per cent, with take-up reaching nearly 13,000MW worldwide. Yet much of that demand is not being met on the ground. The Index shows that committed supply has risen sevenfold since 2019. Meanwhile, under construction capacity is no longer keeping pace with demand, showing a marked slowdown compared to committed and early stage supply. This mismatch points to a growing delivery gap. Two primary bottlenecks explain the slowdown:
the power grid and planning approvals. In major hubs such as Northern Virginia, Dublin and Singapore, securing substation connections can take years. Local planning processes are becoming increasingly lengthy and complex, often facing community opposition. Even with investment capital ready, many projects stall long before they can break ground. “The market is not cooling. It is overcommitted
and underdelivered,” says Colby Cox, Managing Director, Americas at DC Byte. “In the US especially, we’re seeing a real tension between intent and execution. Projects are being leased before construction starts, but grid delays and permitting hold-ups are pushing delivery further out. This isn’t a demand problem. It is a development bottleneck. Operators who can bring capacity online, not just announce it, will be the ones who win.” For the electrical engineering sector, this
highlights the urgent need for innovation in grid management, renewable integration and scalable connection infrastructure. Without breakthroughs, data centres risk being planned and leased years in advance, only to sit idle waiting for power.
2. Cloud still reigns above AI Artificial intelligence has dominated headlines, but when it comes to actual leased capacity, AI remains a minority share. In 2024, AI accounted for just 11 per cent of global demand, or around 1,400MW. In contrast, cloud services drove 52 per cent of demand, or more than four times that of AI, making them the single largest demand driver for data centres.
Cloud’s dominance is structural. It dictates
where hyperscalers build, how much power they secure and how they structure land acquisitions. AI will grow, but its rollout faces practical hurdles. High-density workloads require advanced cooling and bespoke designs, slowing delivery and narrowing the number of viable sites. Cloud workloads scale more flexibly, making them the engine of current global growth. For engineers and operators, this raises critical
questions about facility design. How can sites be optimised to serve both traditional cloud tenants and emerging AI demand? Balancing flexible scalability with future high-density requirements will be a defining challenge.
3. Hyperscalers are redrawing the map Perhaps the most striking trend is geographic. Hyperscalers are no longer concentrating expansion in Tier 1 hubs. Instead, new frontiers are emerging. Alberta is planning more than 7.5GW of
development, anchored by mega-campuses such as Wonder Valley, set to become one of the world’s largest AI sites. Indiana has emerged as a hyperscale hotspot, benefiting from utility partnerships and pro-growth tax policies. Iowa is also emerging as part of a new US hyperscale corridor, supported by abundant land, access to renewable energy and a track record of attracting major operators. “Such markets are not secondary choices,”
says Siddharth Muzumdar, Research Director at DC Byte. “They are becoming the new centres of hyperscale gravity. We are seeing similar patterns in Europe, where constrained Tier 1 hubs are
pushing activity into newer locations, such as Madrid, Milan and Athens. Such locations have seen a spike in hyperscale activity, especially in the last three years.” Across the global analyst team at DC Byte, this
migration is observed, reflecting the delicate balance between power, land and policy. Markets that can offer renewable energy at scale, affordable land and supportive planning environments are capturing hyperscale interest. For electrical engineers, this represents both a challenge and an opportunity: designing and delivering resilient infrastructure in regions not historically associated with global-scale data centres.
Looking Ahead The Global Data Centre Index shows a sector under pressure but also full of opportunity. Power and planning constraints are reshaping supply. Cloud continues to be the dominant driver of demand. And new regions are rising as hyperscale hotbeds. For operators, suppliers and investors, the
message is clear: the data centre landscape is evolving rapidly, and the next phase of growth will look very different from the last. For the engineering community, the challenge is to design, connect and scale the infrastructure that can keep pace.
https://www.dcbyte.com/
38 ELECTRICAL ENGINEERING • SEPTEMBER 2025
electricalengineeringmagazine.co.uk
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