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“It was more common for us to hear from managers that their data centers were looking a bit overbuilt and the returns are a little bit low,” said Bradley Hough, recalling that changed abruptly with the rise of generative AI, particularly the launch of ChatGPT, which sparked a dramatic surge in demand.
“It was really the emergence of AI that changed that picture in a positive way,” said Hough, consultant at PBI Actuarial Consultants.
But he warned the sector’s growth isn’t without complications, particularly when it comes to power. For two decades, electricity demand in the US had been trending downward, thanks to energy efficiency gains like LED lighting and flat-screen TVs. But that has since gone away with the emergence of data centers and AI.