The International Data Center Authority (IDCA) has emphasized the urgent need for a global framework regarding the deployment of digital infrastructure amidst the rapid growth of AI-driven power demands. Mehdi Paryavi, the IDCA’s CEO, warned that current fragmented national policies could significantly hinder the development of data centers necessary to support the AI boom.
In an interview with Data Center Knowledge, Paryavi highlighted the increasing electricity consumption by data centers, which has now reached approximately 68 GW worldwide—about 1.9% of global electricity generation and a 17% increase from the previous year. In the United States, data centers are responsible for about 26.7 GW of electrical demand, equating to around 6% of the national grid’s total. These findings are in line with projections from the Electric Power Research Institute (EPRI), which anticipated that data centers could represent between 9% to 17% of the US electricity consumption by 2030.
The IDCA’s Global Energy Report points to critical grid constraints in at least 12 major markets, including the US, Singapore, and Germany, where moratoriums or development restrictions are in place. These constraints, it states, are exacerbated by the shift toward liquid cooling, which may help alleviate water resource issues but consequently increases the load on already stressed electrical infrastructures.
One significant finding from the report is that about 13% of the electricity consumed by US data centers is from underutilized workloads—often referred to as "zombie" applications—indicating that there exists more than 3 GW of recoverable capacity. The industry needs more than just renewable energy resources to meet this escalating demand. The report suggests alternative technologies such as small modular reactors (SMRs), hydrogen fuel cells, liquefied natural gas (LNG), and battery energy storage systems (BESS) as potential bridge solutions.
Paryavi argues for a unified approach to data center development, asserting that without international consensus, the industry might stagnate. He equated the fragmentation of digital infrastructure regulations to the chaos that would ensue if IP addresses held different meanings across borders.
As energy gaps and delays in permitting persist, the report advocates for sustainable energy practices, coupled with “behind-the-meter” power generation, which lessens dependence on traditional power grid connections. Paryavi believes that governments need to reevaluate their energy strategies to accommodate the increasing demand for AI-driven digital infrastructure.
Moreover, the IDCA report proposes that data centers evolve into regenerative infrastructure, delivering community benefits through initiatives like waste heat reuse, similar to partnerships being forged by major companies for district heating purposes.
Despite discussions among industry experts implying a potential slowdown in data center growth as efficiency improves, Paryavi remains optimistic. He predicts that traditional designs cannot meet the ongoing demand, and major players in the market, such as hyperscalers, continue to push forward with their construction plans.
In summary, the IDCA concludes that a concerted effort to establish global standards, alongside innovative energy solutions, is essential for harnessing the potential of AI while providing resilient, community-focused infrastructure.
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