AI is driving a sharp rise in data-center demand

The need to train and run AI and generative models is driving a sharp global rise in demand for GPU-based high-density computing. While traditional racks ran at 5–10 kW, AI clusters now reach 40 kW or more per rack, pushing a shift from air cooling toward liquid cooling. As power consumption grows, data centers are locating closer to renewable energy and focusing on improving PUE (power usage effectiveness). The number of “edge” data centers that bring compute closer to users to cut latency is also increasing. Analysts expect data-center capacity shortages and upgrades to power and cooling infrastructure to be a key industry challenge in the coming years.