In Focus: AI’s Influence on Data Center Growth
16 Oct 2023
Artificial intelligence (AI) is one of the most talked about subjects of the year, anticipated to touch almost all facets of modern life. Hotly debated from dinner tables to Hollywood to the halls of Congress, synthetic data will completely overtake real data in AI models by 2030, according to market research firm Gartner.
The increasing adoption and emphasis on AI as a core component of corporate objectives is driving a substantial surge in demand for computing power and resources required to implement AI models. This new demand requires the development of more — and better data centers — that can support the unprecedented computing power required to operate AI.
The AI boom is coming at a time when the data center market is already experiencing increased demand. According to the 2023 JLL Global Data Center Outlook, the global colocation data center market is forecast to grow at 11.3 percent per annum (CAGR) from 2021 to 2026. We expect the hyperscale data center market to grow even faster at an approximately 20 percent CAGR. The rise of AI will both bolster the already high demand — with increased data usage — and improve computing efficiency.