Khazna And Whiteshield Analyse Data Centers’ Economic Impact

With projections indicating that over 180 zettabytes of data will be generated by 2025, the importance of robust data centre infrastructure cannot be overstated. A new whitepaper by Khazna Data Centres, in partnership with WhiteShield, delves into economic opportunities and challenges fueled by data centres as organisations on a global scale navigate the complex terrain of digital transformation.

Titled “Navigating the Economic Landscape of Data Centres”, the whitepaper provides an in-depth analysis of the current state of the data centre landscape based on expert insights and industry statistics. The surge in internet users, which has tripled over the past decade, underscores the unprecedented expansion of the digital landscape, with data consumption skyrocketing by thirteen-fold from 2010 to 2022. Data centres have emerged as the cornerstone of the global digital economy, fueling a multitude of industries ranging from retail and manufacturing to infrastructure and transportation. These vital hubs serve as the linchpin of our digital ecosystem, facilitating the seamless flow of information that drives businesses, empowers consumers, and fosters technological innovation.

Key Findings

Data Centres Powering the Digital Economy
The global hyperscale data centre market is estimated to reach approximately $935.3 billion by 2032, with a projected CAGR of 27.9%. With the increase of data-driven technologies such as Artificial Intelligence (AI) and Machine Learning (ML), digital transformation is crossing new thresholds across industries. As a result, the data centre and cloud industry has become a key priority for many nations, and investors, across the world. Evidently, Foreign Direct Investment (FDI) into data centres maintained its momentum in 2022, with projects worth $44.8 billion announced globally. For example, The Netherlands, with its central location as a digital gateway to the rest of Europe, serves as a magnet for investors – the whitepaper states that 20% of The Netherlands’ FDI are associated with data centre and cloud computing. The data centre and cloud industry also contribute $1.6 billion to the country’s GDP. The growth and dynamism of these technologies are reshaping not just economic structures but also the way businesses operate and innovate.

AI and Data Centre Infrastructure
AI applications and digital workloads have become increasingly prevalent, and lays emphasis on the need for a resilient digital infrastructure necessary to harness the transformative potential of AI while maintaining a robust labor market. The whitepaper reiterates a significant correlation between a nation’s preparedness for AI in its workforce and the proficiency of its data infrastructure. The analysis showed that about 20% of global data centre capacity is already dedicated to AI and that data centres play a crucial role in supporting the seamless flow of data and services across borders.

With the global expansion of data centres, an increase in labor will be required for the planning, construction, and operation of the data centre infrastructure. Furthermore, the World Economic Forum forecasts that by 2025 AI will generate a net gain of 12 million jobs. This increase in employment highlights AI’s potential to stimulate economic growth and broaden the spectrum of job prospects.

Economic Contribution
Data centres drive economic growth and job creation, with a single facility directly generating $243.5 million in local economic output and sustaining 157 jobs, while also contributing $32.5 million to the local economy and $1.1 million in government revenue. Beyond the direct economic impact of data centre investments, building digital infrastructure is crucial for fostering innovation, mitigating employment challenges and propelling economic growth.

Sustainability Imperative
Recognising the environmental impact of data centres, the whitepaper highlights the significance of sustainability in data centre operations. By 2027, it is anticipated that the global electricity usage linked to AI will experience a notable increase, estimated to range from 85.4 to 134.0 terawatt-hours per year, primarily due to the introduction of more power demanding IT equipment. The implementation of renewable energy sources, coupled with innovative cooling technologies, reinforces a commitment to minimising the environmental footprint associated with data centre operations. The Future First Strategy by Khazna prioritises investments in renewable energy sources and innovative cooling technologies to minimise the carbon footprint associated with data centre operations.

Commenting on the insights revealed in the whitepaper, Johan Nilerud, Senior Director Strategy and Planning of Khazna, remarked, “The digital revolution has highlighted the critical role of data centres in powering the next wave of digital transformation. This report highlights not only the direct economic and employment impact of data centre investment, but the critical foundation data centre infrastructure plays in enabling and catalysing societal benefit such as upskilling workforce across a spectrum of professions, fueling cross-sectoral growth through entrepreneurship and investment, and powering innovation to secure a sustainable future.”
Philippe Nahas, Partner of Whiteshield further commented “Investing in robust data centre infrastructure is not just about technological advancement; it’s a strategic catalyst for economic prosperity and job creation. Our latest whitepaper, in partnership with Khazna Data Centres, underscores the value of nations harnessing the transformative power of AI to propel global economies into the future.”

 

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