(Updated in October 2024)
In recent history, we have witnessed various eras of change, transformation, innovation, and the breaking of preconceived ideas. In 1765, the First Industrial Revolution began the journey of mechanization, followed by the Second Revolution in 1870, which illuminated the world with electricity. After 1969, the Third Revolution brought science fiction closer to reality with the advent of computing. Until recently, we said we were immersed in the Fourth Industrial Revolution—the era of digitalization—accelerated in part by the 2020 pandemic.
Are we already in the Fifth Industrial Revolution?
With the rise of artificial intelligence, many claim that we are entering the fifth industrial era, where digital transformation gains the potential to become a meaningful collaboration between humans and machines. This transformation is reshaping the workforce and introducing key concepts such as automation, efficiency, and adaptability.
This era is also characterized by the massification of data, the demand for immediacy, and the need for real-time availability. However, it also brings the fear of interruptions and system failures—catastrophes for the modern world. Here, data centres come into play: a sector born to meet businesses’ needs to ensure and protect their information. Over time, data centres have strengthened their position as guardians of continuity, redundancy, and availability. So central and indispensable are data centres to today’s digital infrastructure that they have become critical services, comparable to telecommunications, water, electricity, and gas.
In the next 10 years, data centres will face significant challenges. These include the need for greater energy efficiency, concerns about environmental impact, the imperative to protect data from increasingly sophisticated threats, and the ability to adapt to emerging technologies such as artificial intelligence. The latter will play a central role in managing data centres, enabling real-time fault prediction, resource optimization, and energy management.
In this article, we will explore these and other challenges data centres will face in the coming years, along with some trends expected to shape their future.
What lies ahead for data centres?
♻️ Sustainability and Energy Efficiency
The environmental impact of data centres, driven by growing electricity demand and their increasing size and number, is a rising concern. According to recent estimates, data centres currently account for approximately 1-2% of global electricity consumption, and by 2030, this could rise to 13%. This makes energy efficiency not just a goal but an imperative for the industry.
To reduce their carbon footprint, data centres must integrate renewable energy solutions, achieve a Power Usage Effectiveness (PUE) as close to 1 as possible (ensuring energy received equals energy used), and adopt more efficient cooling technologies. At Adam, we use 100% renewable energy and design our data centres to maximize energy efficiency while minimizing our carbon footprint using free-cooling technologies. Additionally, we have received the Climate Neutral Data Centre Pact (CNDCP) Certificate of Compliance, aiming for climate neutrality in European data centres by 2030.
🔐 Security and Cyberdefense
As the volume of data grows exponentially, so does the attack surface, increasing the need to protect this information. Furthermore, with the integration of advanced technologies such as artificial intelligence (AI) and machine learning, the data being processed and stored becomes even more valuable and attractive to cybercriminals.
Cybersecurity will be a critical challenge for data centers in the coming years, as threats are becoming increasingly persistent, sophisticated, harder to detect, and more challenging to mitigate (such as ransomware and advanced phishing). On top of that, data centers must ensure compliance with regulations protecting personal data, which requires implementing robust security measures to prevent breaches and unauthorized access—especially since non-compliance can lead to severe financial penalties and reputational damage for organizations.
At Adam data centers, we have implemented both technological and physical security measures, such as intrusion detection systems and video surveillance to protect against external and internal access, all connected to security personnel, as well as security controls for data center management tools, among many others. Here are more details about our security measures.
💻 Edge Computing and Ultra-Low Latency
The increasing demand for internet access, the expansion of the Internet of Things (IoT), and the proliferation of connected devices are driving a continuous rise in global network traffic. This, in turn, creates a growing need for reliability, speed, and interconnection. As a result, another key challenge for the industry is reducing network latency by bringing digital applications and content closer to the end user—essentially adopting edge computing.
This approach involves processing data closer to where it is generated, enabling faster response times for critical applications. To achieve this, centralized data centers will coexist with a distributed network of micro data centers in the coming years, optimizing service delivery and enhancing the user experience. Additionally, the infrastructure of exchange points will be crucial for ensuring data traffic is distributed more efficiently and quickly.
This infrastructure offers multiple benefits, such as much more affordable internet access, more direct network connections, and faster access speeds, as traffic is routed locally instead of through international transit routes.
As a leading ISP, Adam participates in multiple exchange points:
- CATNIX (Catalonia Neutral Internet Exchange)
- ESPANIX (Spanish Neutral Internet Exchange)
- DECIX (German Neutral Internet Exchange)
💡 Adaptation to Advanced Technologies like AI
The next decade will see the consolidation of emerging technologies such as quantum computing, 5G, and advanced artificial intelligence (AI). Data centers will need to evolve to support these innovations, which will require upgrading their infrastructures, optimizing data storage, and enhancing processing capabilities. The ability to quickly adapt to these technologies will be a decisive factor in remaining competitive.
Artificial intelligence (AI), for instance, will become a crucial component for the operation and optimization of data centers in the coming years. This technology will contribute to:
- Implementing higher levels of automation for routine tasks and minimizing human error.
- Conducting predictive maintenance strategies, reducing downtime, and extending equipment lifespan.
- Optimizing resources.
- Managing the energy consumption of data centers.
- Analyzing large volumes of data through algorithms to adjust workloads or anticipate future demands.
- Increasing the resilience and adaptability of data centers.
☁️ Growth of Cloud Services
As more companies and organizations migrate their operations to the cloud—a trend that accelerated during and after the pandemic—the demand for data center infrastructure continues to rise. This growth is on an upward trajectory, evidenced by the massive construction of hyperscale centers and edge data centers (localized micro data centers that drastically reduce latency for content consumption and applications) over the past four years to meet the increasing information management needs driven by digital transformation.
According to a study by P&S Intelligence, global data center market revenues are projected to reach $341.8 billion in 2024 and nearly double to $622.4 billion by 2030, with an annual growth rate of 10.1%.
This is excellent news for the industry, but the massive generation of these centers comes with a significant environmental footprint and presents a series of challenges that need to be addressed as soon as possible, as previously mentioned.
Key Regional Trends
Madrid: Europe’s Next Data Hub
In 2022, Madrid reached 147 MW of data center capacity, marking a 40% growth compared to the previous year. Moreover, major cloud providers are launching their regions within the metropolitan area of the Spanish capital, driven by the demand for cloud hyperscalability and the development of national digital infrastructure.
Madrid is considered the fastest-growing data center region in Europe due to the saturation of the main FLAP regions (Frankfurt, London, Amsterdam, Paris) and its strategic location near submarine fiber connections. As a result, data center capacity in Madrid is expected to grow significantly, reaching 613 MW by 2026, surpassing other European hubs in annual growth rate (42.9%).
Another key factor is the high reliability of Madrid’s electrical system, supported by Red Eléctrica Española (REE), one of the most advanced grids in the world. In 2023, Madrid experienced no disruptions in electrical service, further solidifying its position as an attractive destination for data centers.
Barcelona: Rising Data Centre Capacity
Among the fastest-growing data center markets is also Barcelona, which has increased its capacity by 68%, from 25 to 42 MW IT, thanks to the arrival of the submarine cable in Sant Adrià del Besòs and the electrical capacity saturation in Madrid. The Catalan capital thus becomes an attractive alternative for international colocation operators looking to expand in the Mediterranean region.
Proactive European Regulation
Once we’ve reviewed all the trends and challenges facing data centers in the future, let’s take a look at what’s happening in our continent from a regulatory perspective.
The EU’s goal is to address the sector’s exponential growth sustainably and define accountability—not only for data centers but also for the governments within the EU—through policies that tackle key aspects.
Policymakers are taking a proactive approach to ensure the proper development of data centers. With effective management, data centers can accelerate the deployment of renewable energy and enhance grid integration and flexibility.
To maximize benefits, policymakers and data center operators will need to collaborate throughout this decade to:
- Ensure sufficient grid capacity and planning to attract the construction of new data centers.
- Promote energy efficiency and flexibility.
- Invest in R&D for next-generation efficient communication and computing technologies.
Some of the most significant regulations and frameworks in this area include:
- DORA (Digital Operational Resilience Act): A European Union regulation requiring financial entities to enhance their digital operational resilience.
- NIS II: This directive is the EU-wide legislation on cybersecurity, providing legal measures to improve the overall level of cybersecurity within the Union.
- UNE-EN 50600: Establishes standards for availability, security, and energy efficiency throughout the lifecycle of data centers, including potential energy savings.
- Directive (EU) 2019/944: A directive of the European Parliament and the Council of June 5, 2019, on common rules for the internal electricity market.
- The Climate Neutral Data Centre Pact: Created by leading cloud infrastructure providers and data center operators with the aim of making data centers in Europe climate-neutral by 2030. This Pact is a self-regulatory initiative developed in cooperation with the European Commission and aligns with the current European Green Deal, which seeks to make Europe the world’s first climate-neutral continent by 2050.
Growth and environmental sustainability must go hand in hand
In conclusion, the demand for data center services will continue to grow significantly, driven by increasing data traffic and emerging technologies such as advanced artificial intelligence, virtual and augmented reality, 5G, and blockchain. To address this expansion, we will need innovation and regulations that help keep pace with the growing demand for data under a framework of eco-sustainability and energy efficiency.
This article has been written by
Adam