Zoe Stollard Construction Partner at Browne Jacobson and Chair of the Nuclear Professional Services Group explores the growth and implications of data centres and outlines some of the trends for the future and how nuclear energy can dovetail into this rise of data centres.
A Brief History of Data Centres
The concept of data centres isn’t new. In the early days of computing, data was stored on large mainframe computers, often housed on site in dedicated rooms designed to manage and cool these bulky machines. As technology advanced, so did the methods of storing and managing data. The advent of personal computers, followed by the internet boom in the 1990s, saw an increased demand for centralized data storage facilities. This need marked the birth of modern data centres.
Understanding the Rapid Growth and Its Implications
Arguably we are living in an era which is comparable to the industrial revolution in terms of change to the economy and society. From initial steps by Alun Turing and his contemporaries we are now firmly in the digital and AI age which is transforming how we work and engage at an exceptionally fast pace. This will probably eclipse the industrial revolution in terms of impact.
In the digital age, the explosion of data centres has been nothing short of phenomenal to facilitate this change. These facilities, which house vast amounts of data and manage complex tasks, are the fundamental foundations of our increasingly internet-driven world. The rapid growth of data centres reflects the exponential growth in data generation, the reliance on cloud services, and the escalating needs of businesses and consumers for real-time access to information.
Where once data was held on site either in a business or at home, the amount of technologically driven devises we use today means that instead of large mainframe computers or bulky hard drives increasingly data is stored in data centres often referred to as in the cloud. If we go back down memory lane to the 1970’s many households just had a television and a telephone with a few having a very basic personal computer or a video recorder. Fast forward to today most households will have more than 15 complex electronic devises using and storing increasing amounts of data.
As of March 2024, there were 11,800 data centres globaly with approaching half of them located in the United States. Considering much of the big tech originating from Silicon Valley this statistic is hardly surprising. The UK had the third largest number of over 500 data centres, a number which is predicted to increase substantially. What is probably not widely known is that by 2030 data centres could account for around 8% of total electricity demand or even more.
The Role of Data Centres
Data centres are often referred to as the control rooms of the digital world. They host websites, store vast amounts of data, run applications, providing the computational power necessary for a myriad of digital services from social media to online banking, streaming services to cloud storage. Without data centres these services cannot happen, affecting productivity and user experience.
Factors Driving the Growth with Challenges & Implications
There are various factors contributing to the phenominal growth of data centres:
- Consumer Demand: The demand for instant access to information, entertainment, and services has never been higher. Data centres ensure that these needs are met with minimal latency and maximum reliability.
- Cloud Computing: With the rise of cloud services businesses are moving away from on-premises servers to scalable, flexible cloud solutions. This shift necessitates the expansion of data centre capacity globally.
- Data Creation: The world is generating data at an unprecedented rate. Every interaction, transaction, and data point needs storage and processing power, driving the need for larger and more efficient data centres.
- Technological Advancements: Innovations in data storage, processing, and cooling technologies have made it possible to build more efficient and powerful data centres, further fuelling their growth.
While the growth of data centres brings numerous benefits, it also presents challenges.
- Energy Consumption: Data centres are energy intensive requiring vast amounts of power to run servers and maintain optimal operating conditions. This high energy consumption has significant environmental impacts, contributing to global warming and struggling power grids.
- Security and Data Privacy: They hold sensitive and critical information, making data centres prime targets for cyberattacks. Ensuring the security and privacy of the data stored in these centres is paramount. This involves implementing robust security protocols, regular updates, and continuous monitoring to minimise and prevent potential threats.
- Infrastructure and Scalability: As data needs continue to grow, so does the need for infrastructure capable of scaling. This requires significant investment in not only the physical infrastructure but also in the network capabilities to handle increased data traffic.
- Regulatory Compliance: Different countries have varying regulations regarding data storage and privacy. Data centres must navigate this complex legal landscape to ensure compliance with national and international laws.
The Future of Data Centres
With technological advancements, changing geo-political landscape, ESG considerations the future of how data centres will be shaped will constantly evolve. What is certain however is, it will be transformative with some key trends to look out for in the future.
- Technological: The anticipation is that edge computing which processes data closer to where it is generated rather than in centralized data centres along with quantum computing could both revolutionise data centres in the future, whilst not forgetting the impact that AI could have in terms of efficiency and optimisation.
- Construction: There has been a trend in the construction industry for modularisation enabling economies of scale and quicker builds. Increasingly data centres will be of modular design, helping to drive down cost amongst other benefits.
- Sustainability: Increasingly they will become green data centres using renewable energy sources and innovative cooling methods such as a shift from air to liquid cooling. Additionally, developers are actively exploring ways to repurpose waste heat generated by data centres for other uses and to be part of wider energy hub solution.
- Scalability & Density: With the anticipated rollout of data centres increasing, consideration is being given to how new centres will be built to future proof longevity as requirements continue to increase along with the opportunity to increase the physical footprint of existing sites. High density date centres are likely to see exponential increase due AI workload complexity.
How Nuclear Energy Will Play its Part?
Over the last 12 months there have been raft of announcements relating to the development of Nuclear Energy as part of the UK’s clean energy mix. First, Rolls-Royce in June 25 was selected as the preferred bidder to partner with Great British Energy for the development of Small Modular Reactors (SMR’s). Each reactor will generate 470 Mwe and these fleets are initially likely to be on licenced nuclear sites.
Second, Sizewell C in July received news of its Final Investment Decision to build a 3,200 MWe nuclear reactor to power 6 million homes. And thirdly to co-inside with the State visit of President Trump in September there were a raft of nuclear energy related announcements including the potential of Micro Modular Reactors through Last Energy generating 20MWe per reactor or potential new entrants.
The new planned and varied fleet of nuclear reactors can dovetail in to the continued development and need for data centres due key considerations.
- Security: Licenced nuclear sites provide the security infrastructure that many developers need to build specialist data centres, with many likely to have the grid connectivity to accommodate any potential additional demand.
- Consistent Supply: Compared to current and existing renewable energy generation options nuclear energy can be produced 365 days per year and 24 hours per day. Each SMR and micro reactor will be built as part of a fleet on each site, so any downtime for planned maintenance of individual reactors can be factored in.
- Location: As the smaller generation of nuclear reactors will be modular the opportunity of transporting to where these reactors are needed can be fully taken advantage of. Whether they are located at licenced sites, free ports or new AI centres of excellence, there are various options which can be considered.
- Economic Regeneration: A fleet of SMR’s or micros could kick start re-generation in a particular area being the hub of energy generation which could provide energy for data centres, large scale manufacturing and engineering facilities and major public sector operations such as schools and hospitals.
Conclusion
The dramatic increase of data centres is a testament to the digital revolution and insatiable demand for data storage and processing. The sector will need to be able to pivot quickly to take advantage of opportunities, be innovative and react to the inevitable challenges. In short data centres will be the critical infrastructure supporting not only our digital lives, but how our economy will thrive of which nuclear energy generation can play it’s part.