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AI growth drives revolution in powering the data centre industry

AI growth drives revolution in powering the data centre industry

Guest/partner contributor
Posted on: 28 May 2025

AVK delivers resilient and sustainable energy and power infrastructure in support of rising energy demands of AI-driven data centres.

Image credit: AVK

AVK delivers resilient and sustainable energy and power infrastructure in support of rising energy demands of AI-driven data centres.

AVK, the largest and fastest-growing supplier of power solutions for data centres and leading organisations in the UK and Europe, is helping build resilience, sustainability and scalability across the critical infrastructure to support our digital future, powered by artificial intelligence. With a clear mission to deliver scalable and environmentally conscious energy solutions, AVK is evolving with today’s fast-changing digital landscape.

AI places significant demands on data centre power management. Future-proofing prime power, efficient backup load-stepping and renewable fuels are key components.

According to the CBRE North America Data Center Trends Report H12024: “Increased demand for HPC creates a significant price disparity between new data centres and legacy facilities. Many existing data centres lack the infrastructure to handle these demanding workloads, further limiting their appeal.”

With no sign of a let-up in the phenomenal pace of AI infrastructure investment, it is vital for data centre operators to stay competitive by implementing intelligent and sustainable upgrades, such as enhancing power density capabilities, adopting renewable energy solutions and investing in resilient infrastructure for AI and high power computing workloads.

According to a recent report from IDC, AI data centre capacity is projected to have a compound annual growth rate (CAGR) of 40.5% through 2027. AI data centre energy consumption is forecast to grow at 44.7%, reaching 146.2TWh by 2027. AI workloads will consume a growing proportion of total data centre electricity use.

Given this growth in AI-driven demand, it’s not surprising that, in a recent report, CBRE observed a growing price disparity between data centres built or upgraded with the high density power demands of AI in mind and existing facilities that still lack adequate infrastructure for AI.

Densities are rising fast and will continue, reaching as high as 100kW/rack, possibly higher. As an industry, we need to advise our customers on configuring their power infrastructure to position themselves for AI resilience and sustainability. This is not just a matter of environmental responsibility. It is also a strategic necessity for the long-term viability of the ever evolving AI industry.

Putting prime power in place

AI is putting significant demands on the grid that it’s struggling to manage, especially in established connectivity hubs like Dublin, Frankfurt, Amsterdam, Paris and London. Waiting times for power capacity are sometimes several years long, creating major headaches for operators. This is where smart microgrids step in, bridging the gap between data centre operators and grid requirements.

AVK’s recent collaboration with major data centre operators illustrates how an effective and tailored microgrid can transform a facility’s operational outlook.

This allowed the client to meet their immediate energy demands while also aligning with sustainability goals, making the data centre a net contributor to the local community with the potential to support national grid infrastructure.

Backup: The load-stepping challenge

Both existing and new facilities must also pay close attention to their backup solutions, which may not be able to keep up with even smaller increases in power density. As customers decentralise their UPS to increase power densities up towards the 50/100kW level, they need smooth load-stepping, which means the ability to gradually increase the electrical load on a backup power system, such as a generator.

Smooth load-stepping allows backup power systems to handle growing demand without overloading or causing instability.

Understanding your power needs

Sustainable, high density infrastructure can be assembled piece by piece as long as organisations apply principles like energy efficiency, scalability and resilience at every step and build for the future.

Microgrid design, load management and renewable fuels are critical elements to consider as power levels increase to support AI. The market is also evolving rapidly; new solutions are being developed that increasingly rely on AI to optimise their effectiveness, making AI part of the solution and the challenge.

Perhaps the most essential principle for tackling these issues is understanding power requirements intimately, from prime power and load-stepping to backup fuel choice.

The journey towards AI readiness is about more than keeping up with technological advancements, it’s about building innovative solutions that are scalable, sustainable and capable of supporting the industry in the long term.

By Ben Pritchard, CEO, AVK.

About AVK

AVK is the largest and fastest-growing supplier of innovative power solutions for data centres and leading UK and European organisations. We specialise in all aspects of design, planning, implementation and continuing maintenance.

At AVK, we power tomorrow’s data. We are transforming the way the data industry connects to and consumes energy by developing innovative and sustainable solutions. We deploy leading-edge solutions for our clients, helping them to meet their power demands alongside their sustainability goals.

With offices and hubs across the UK and Europe, AVK is in a unique position in terms of operational scale and delivery capabilities to tackle complex, large-scale and ground-breaking engineering and energy projects.

AVK – Powering Tomorrow’s Data

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