Trial / Demo
According to the International Energy Agency (IEA), global data centre electricity consumption is projected to double to around 945 TWh by 2030, under a base case scenario. This poses obvious challenges in terms of supply constraints, grid capacity and connection approval times for new facilities, but also translates into rising energy costs for consumers, with some regions expected to see electricity prices rise by as much as 60% over the next five years, as a direct result of growing data centre energy demands.
As a result, some regions now require operators to bring their own power through utilisation of renewable energy, battery storage or other alternative energy strategies. Alongside this, AI is reshaping data centre development and investment in other ways, with AI training facilities commanding 60% lease rate premiums, and an associated boom in GPU deployment, as demand for infrastructure capable of supporting AI model training grows.
Against the clock
Time to power is fast becoming the new competitive advantage for data centre operators. However, grid constraints present significant challenges across many markets. In Europe, average wait times currently stand at 7-10 years. While some countries have introduced measures to address the issue – for example, the UK has introduced a readiness based system intended to shorten connection timelines and allocate capacity more efficiently – many data centres are still facing connection dates far into the 2030s.
In North America, similar challenges prevail. Google reports that transmission connection delays of up to 12 years have become the biggest obstacle to powering its data centres. With data from Lawrence Berkley National Laboratory indicating that only 13% of capacity requesting interconnection from 2000-2019 had reached commercial operation by the end of 2024, many data centre projects are being forced to explore alternative solutions, such as behind-the-meter power arrangements or battery storage, to bypass long wait times.
However, grid constraints are not the only issue limiting some projects from progressing beyond the planning stage. While environmental assessments are an essential and important part of any new development, there often remains uncertainty for data centres around what evidence is expected, when it should be provided, and how fully potential impacts should be addressed. That lack of clarity can lead to mixed messages for both planning authorities and developers that ultimately prevent viable projects from making it out of the starting blocks.
Poor planning can delay or even cancel projects
In the UK, a recent High Court ruling quashed planning permission for a £1bn, 90MW hyperscale data centre due to shortcomings in the planning application, particularly surrounding the assumptions made concerning the availability of low-carbon electricity. This situation is far from isolated. In the UK, several projects have had planning permissions rejected due to similar oversights, and in the US, it is estimated that 64 billion dollars’ worth of data centre projects are currently blocked or delayed due to local opposition of some kind.
Independent, evidence-based dynamic modelling can help developers provide that clarity. By showing how a data centre would operate in practice – and under real climate conditions – teams can test different cooling, energy and design options, and evidence how environmental impacts could be reduced. This approach supports more informed decision-making during the planning phase and can help expedite approvals by addressing environmental, regulatory and feasibility concerns early in the process – allowing teams to course correct as necessary to meet the necessary requirements.
To learn more about dynamic simulation and how it addresses the key challenges facing modern data centres, download the full IES whitepaper: De-risking High-Performance Data Centres with Dynamic Simulation.
Discover how whole-facility modelling is transforming data centre planning, design, retrofit, and operation in an era of AI-driven infrastructure demands.
