Posted by DLA Piper report finds optimism in data centre sector
28 Nov 2024 
Reading time: 2 minutes
William Marshall
Global data centre investors and operators are confident about the sector’s future and predict increased investment in data centres in the next two years, according to research by DLA Piper.
The global law firm commissioned TMT Finance to survey 176 senior executives on the topic of data centre investment opportunities and related emerging trends such as access to power and the impact of AI.
The findings are included in a new report which highlights that AI will drive demand for data centres, primarily through machine learning and natural language processing.
However, respondents have expressed significant concern over the stability of power supplies for the rapidly-growing number of data centre sites worldwide.
A total of 98 per cent of investors and operators told the global law firm that they had concerns about the availability and reliability of power supplies when they made decisions about data centre projects, with half of respondents identifying the issue as a principal barrier to investment.
The global data centre market is expected to be valued at around $300 billion USD in 2024 and $483.15bn by 2029.
William Marshall, energy partner in DLA Piper Ireland, commented: “Data centre capacity is central to the AI revolution and thus the global economy in the coming decades.
“It will take significant investment across the industry, and coordination between policymakers, investors and grid operators, to ensure that power supplies can meet the demand from industry and investors.
“In Ireland, large scale new investment in data centres have led to concerns and policy responses and although Ireland is far from alone in security of supply and decarbonisation concerns, digital infrastructure and tech are substantial high value sectors for the Irish economy.
“Consequently, it is hoped that following the current Commission for Regulation of Utilities policy review, a clear and achievable path for connection of new data centres will be available.”
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