Data centre trends for 2025 – and beyond

The data centre (DC) sector continues to evolve to meet growing demands for computing power, sustainability, and innovative technologies such as AI and edge computing. We’d like to share some findings from our annual research into Data Centre technology and market developments.  

AI and Edge Computing 

AI is significantly transforming data centre infrastructure. Surging data volumes continue to challenge traditional infrastructures, requiring high-performance computing (HPC) units that tackle density, heat, and real-time tracking while optimizing connectivity and configuration. Data-rich processes such as machine learning, large language models, autonomous traffic, and visualization require high-performance computing near the point of use. These workloads demand higher power densities and advanced cooling solutions. Due to latency, cost, efficiency, and security constraints, AI often surpasses traditional cloud infrastructure capabilities. A 2024 McKinsey survey found 72% of organizations now use AI in at least one business function - a marked increase. 5G and IoT are also driving edge computing growth, pushing DCs to expand storage, improve efficiency, and integrate AI, ML, and automation for enhanced data processing.

Edge DCs enable real-time AI-driven decisions, closer IoT integration, and enhanced data control. MarketsandMarkets projects edge computing to grow from $60 billion in 2024 to $110.6 billion by 2029. Their decentralized architecture ensures low latency and fast processing but poses challenges in site selection, infrastructure durability, and autonomous operation.

Sustainability and energy efficiency

With rising DC energy consumption, sustainability has become a critical priority. Modern data centres are designed for power efficiency, incorporating liquid cooling, advanced grid structures to minimize losses, and compact optical switches to enhance connectivity. Meeting governmental sustainability standards is now essential, driving infrastructure investments and modernization across the industry. According to Goldman Sachs, data centre power demand could increase by 160% by 2030, potentially accounting for 3% to 4% of global power consumption. Optical switches play a pivotal role in meeting demand for energy-efficient, high-speed, and scalable  data transmission. By using light to transmit data, they deliver significantly higher bandwidth and faster speeds compared to traditional electrical switches. This technology is vital for managing the exponential data growth from cloud computing, AI, and IoT applications, enabling scalable, sustainable operations with minimal latency and signal loss.

Security and cyber resilience

As data networks grow more complex, cybersecurity needs are escalating. Gartner predicts a 15% increase in security spending, reaching nearly US$212 billion by 2025. Data centres require advanced protections to maintain data integrity and prevent breaches. AI-powered intelligent monitoring enables proactive threat detection and swift responses, safeguarding critical infrastructure effectively.

A closer look at IT solutions

The advent of software-defined infrastructure and virtualization are enabling more flexible and scalable DCs. These technologies are reducing physical hardware dependency by virtualizing processes, improving space utilization, and enabling more efficient power and cooling. Furthermore, innovative chips are being taken up to cover fast-growing processing demand, such as Graphics Processing Units (GPUs) that consist of hundreds or thousands of smaller cores optimized for handling multiple tasks simultaneously. GPUs require more power, emit more heat, and occupy more space than traditional CPUs - all while space and emissions must be minimized. For example,  NVIDIA’s Rockwell combines CPUs and GPUs on one single block, vastly ramping up performance, but also boosting power and cooling requirements. The demand for such solutions has exploded since Q4 2022 when Chat GPT started to grow fast.

A closer look at OT solutions

OT solutions need to facilitate growing power, density, and traffic requirements. The need for lower latency and faster data processing closer to the source is pushing for more distributed and flexible infrastructure designs. 

Insights and automation

There’s a need to dynamically manage high port densities, environmental conditions (such as temperature and humidity), power usage, and resource allocation by analysing operational data. This helps prevent overheating and optimize equipment placement. Automated Management and DCIM solutions, coupled with AI and AR, enhance resource optimization and decision-making. This integration allows for better coordination between physical asset management (power, cooling, racks) and IT processes (networking, storage, compute). AI-powered digital twins further refine design, performance, and scalability, ensuring DCs remain resilient and efficient.

Cooling Innovations

Higher power density requirements mean that data centres today must manage significant heat generation. Liquid cooling and other advanced cooling techniques are becoming essential for ensuring the reliability of servers and network infrastructure. Solutions like modular racks and integrated software platforms enable smarter resource allocation, which helps manage heat, power, and connectivity demands more effectively. Innovative intelligent grid structures that minimize power losses will increasingly be in demand.

To manage heat from higher equipment densities, liquid cooling systems such as immersion cooling are gaining traction. AI-driven systems optimize energy use by predicting cooling demands based on workload patterns and temperature. Zoned cooling tailors temperature control to specific areas, enhancing efficiency. Combining liquid and air cooling often requires detailed infrastructure mapping and dynamic adjustment to prevent cable overheating and maintain performance.

Hybrid cable structures

As data rates rise to 400G and beyond, Base-8 cabling aligns better with new transceiver architectures, reducing waste. Hybrid cabling systems, combining copper for power and fibre optics for bandwidth, offer flexibility for diverse connectivity needs. Fibre optics dominate for high-speed, long-distance links, while copper evolves for short distances, such as PoE. Compact fibre cabling innovations support high-density deployments, scaling efficiently in constrained DC spaces. Integrated AIM and DCIM solutions minimize human error by automating tracking and alerts for critical infrastructure changes.

Advanced Racks

As density rises, efficient use of rack space is essential. Key innovations that support the resulting higher density include smart migration paths, splice-free connections, Very Small Form Factor (VSFF) Connectors, ultra-slim ribbon fibres, high-density connectors, closures, and advanced monitoring tools. Preconfigured cabinets with integrated power, cooling, security, and connectivity also provide modular solutions for modern DC needs.

Increasingly, operators are placing parts of DCs in AI. This could be just one or two containments with 50-60 kW per rack, instead of a full 100kW rating. High-density racks now accommodate heavier, high-performance equipment like blade servers and GPUs, requiring enhanced stability and cooling. Modular designs enable scalability with minimal disruption. Modern racks support larger PDUs for increased power delivery (up to 100 kW), ensuring redundancy and real-time power monitoring. Deep racks with up to 52 rack units optimize space for cooling and hardware, meeting demands for advanced data centre configurations.

Preparing for tomorrow’s needs

Data centers are undergoing significant adaptation and transformation, as current legacy installations are updated to meet evolving requirements. Consultants face increasing challenges in ensuring that plans for data centers, often realized over a two-year timeline, remain relevant and aligned with future demands. Accurately forecasting these demands is becoming a critical factor in maintaining the viability and efficiency of planned installations.

Future-proof solutions are required to tackle evolving challenges while ensuring seamless data processing, security, and operational performance. Infrastructure investments across edge, colo, and hyperscale DCs are evolving to meet fast-changing demands in sustainability, regulation, and efficiency. Modernization goes beyond hardware updates, integrating hardware, software, energy efficiency, and security into unified systems. Modular, scalable solutions featuring remote monitoring, predictive maintenance, and advanced cooling (e.g., liquid and hybrid systems) are key to keeping up. However, the key challenge is to successfully scale infrastructure while maintaining availability and minimizing disruptions as equipment changes. When choosing equipment, it’s vital to look far ahead, and make sure every component is perfectly integrated.  That allows you to enhance capacity and scalability, improve reliability, and simplify maintenance for years to come.