Mehdi Paryavi, the founder and CEO of the International Data Center Authority (IDCA), believes that the data center industry requires a worldwide agreement on the implementation of digital infrastructure to avoid hindering the growth necessary for the AI era. In an interview with Data Center Knowledge prior to the release of the organization’s most recent industry report, Paryavi stated that inconsistent national strategies regarding permitting, energy policy, and infrastructure planning could become a significant barrier to sustained AI-driven expansion.
These remarks coincide with a surge in electricity demand from data centers. As per the IDCA, digital infrastructure facilities are utilizing approximately 68 GW of power globally, accounting for nearly 1.9% of overall production and showing a 17% increase compared to the previous year.
In the United States, the organization calculates that data centers contribute to 26.7 GW of demand, which is approximately 6% of the national grid. This is related to the news about the New York Data Center Moratorium, where the state has paused projects exceeding 93 MW. These figures are consistent with the projections by the Electric Power Research Institute (EPRI), which states that data centers consume about 5% of US electricity and may account for 9% to 17% by 2030.
Considering this scenario, the IDCA’s Global Energy Report investigates how governments and operators can accommodate AI-driven demand while considering grid limitations, sustainability objectives, and community issues. This situation is altering the development of data centers.
The report highlights that grid limitations are now a major concern in over 12 significant data center markets. In countries such as the US, Singapore, the Netherlands, Germany, South Korea, Chile, and Mexico, there are moratoriums or restrictions in place. In addition, the text asserts that although liquid cooling is alleviating the burden on water resources, it is intensifying the demand on the overburdened power grids.
The IDCA calculates that approximately 13% of the electricity used by data centers in the US is consumed by ‘zombie’ applications, which are unused or not fully utilized workloads, amounting to over 3 GW of possible energy savings. In addition to renewable energy, the report states that technologies like small modular reactors (SMRs), hydrogen fuel cells, liquefied natural gas (LNG), and battery energy storage systems (BESS) are necessary to meet the rapidly growing demand for AI.
Although there is no universal solution for digital infrastructure, the industry needs a shared global framework to prevent a fragmented approach to data center development. Related:IDCA: Data Centers Reach 67.7 GW Amid Increasing Policy Resistance. He expressed to Data Center Knowledge that without reaching an agreement, the disjointed method will prevent the advancement of the digital realm.
Consider a scenario where the meaning of an IP address changes each time a data packet traverses a network boundary, or if kilowatt was represented by various symbols across different countries as opposed to its present interpretation.
