Gartner predicts that the exponential growth of electricity consumption fueled by AI will cause power shortages set to operationally constrain 40% of data centres by 2027. This is further compounded by a staggering 160% growth forecast for data centres over the next two years.
“The explosive growth of new hyperscale data centres to implement GenAI is creating an insatiable demand for power that will exceed the ability of utility providers to expand their capacity fast enough,” said Bob Johnson, VP analyst at Gartner. “In turn, this threatens to disrupt energy availability and lead to shortages, limiting the growth of new data centres for GenAI and other uses from 2026.”
Estimated incremental power consumption
Gartner projects the power required for data centres to run incremental AI-optimised servers to increase 2.6 times its level in 2023 and reach 500 terawatt-hours (TWh) annually in 2027.
“In the meantime, the cost of power to operate data centers will increase significantly as operators use economic leverage to secure needed power. These costs will be passed on to AI/GenAI product and service providers as well,” said Johnson.
Future plans
Gartner emphasizes the need for organisations to anticipate higher power costs, negotiate long-term contracts for data centre services, and consider significant cost increases when developing new product and service plans.
More importantly, Gartner advises organisations to actively seek and implement alternative approaches that require less power.
