CRE News
AI Drives Data Centre Growth

November 9, 2023

Generative AI has continued to demonstrate its potential in bringing transformative changes to a wide range of industries. With 35% of businesses adopting, and 77% of devices featuring some form of AI, what are the implications for the future of data centre?

Large data centres enable cloud computing and house the computer servers and hardware required to support modern internet use. As artificial intelligence moves into the mainstream, the need for real-time, low-latency processes of Large Language Models (LLM) providing instant responses are having major demands on computational power and data storage.

AI models require training, involving a cluster of many chips, known as an AI supercomputer. It is estimated that there are between 10,000 and 30,000 data centres in the world, with only around 325-1,400 of these having the ability to host an AI supercomputer.

Generative AI has already left its mark on the configuration of AI clusters, to enable larger neural networks, meaning higher hardware requirements, enhanced compute infrastructure, and increased datasets. 



NextDC is one of the largest data centre companies in Australia, with 15 data centres across the country. The company is currently expanding its centres, building new facilities in Sydney, Melbourne, Brisbane, and Perth. This expansion is expected to create more than 1,000 jobs, adding to the Australian economy. CSIRO estimates that the global data centre market is expected to grow at a compound annual growth rate of 10.9% until 2030.

While demand for data centre capacity is growing rapidly, data centre operators are investing in new technologies and innovative solutions to meet this demand while reducing their environmental impact.

Potential changes in compute development, like neuromorphic computing or quantum computing, have the capacity to substantially increase computing power. Unfortunately, we are not there yet, existing data and communications infrastructures must undergo radical transformation and expansion to meet the new AI demands.

Anacle Systems, a leading SaaS provider, has extended its enterprise real estate management platform with Digital Twin and IoT capabilities, empowering data centres to seamlessly monitor and analyse sensor data while enabling intelligent control of building infrastructure and smart systems. 

  1. Mark Haranas, “AWS, Microsoft, Google’s Cloud Market Share Q1 2023,” CRN, May 4, 2023,↩︎
  2. Pilz and Heim, Compute at Scale. ↩︎
  3. Konstantin Pilz and Lennart Heim, Compute at Scale, Konstantin F. Pilz, July 2023, ↩︎