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5 Data Center Industry Trends and Predictions for 2025 and Beyond

Posted by Dave Bercovich on February 10, 2025

| Categories: Data Center

Making predictions about what the data center landscape will look like in the coming year is a difficult proposition. Data centers must continually adapt to meet ever-increasing demand and the accelerating pace of technology change. 

At the same time, data center developers and operators are looking for guidance as they map out their strategies for 2025 and beyond. Here are five trends that are likely to be significant in the coming year.

Data Center Capacity Demands Will Continue to Increase

Cloud computing and AI applications continue to drive strong demand for data center space. According to recent reports from CBRE, North American data center vacancy rates remain at record lows of around 2.8 percent in primary markets and 9.7 percent in secondary markets. 

New data center construction in North America’s primary markets saw a 70 percent year-over-year increase, with dedicated data centers coming online to support the power requirements and optimized cooling of AI. Buildout of new capacity will continue as demand shows no sign of abating. 

New Approaches Will Help Meet Data Center Power Demands

Data centers consumed about 460 terawatt-hours of electricity in 2022, and consumption is expected to exceed 1,000 terawatt-hours by 2026. Power constraints force data centers to look beyond primary markets to regions with more plentiful electricity

Data center developers are also looking to new approaches to meet their power demands and sustainability objectives. Microgrids will increasingly fill the gap with a mix of traditional electricity sources, renewables, hydrogen fuel cells, and small modular reactors. Developers will also repurpose coal and natural gas generators to take advantage of existing infrastructure.

More Data Centers Will Adopt Liquid Cooling

The continued adoption of AI and other high-performance workloads is forcing developers to make significant changes to data center designs, particularly when it comes to cooling. Most data centers were built to support workloads of about 10 kW per rack. AI and HPC workloads have power densities of 50 kW to more than 300 kW per rack. 

Faster and more powerful chipsets produce a significant amount of heat, driving the adoption of efficient liquid cooling solutions such as immersion, rear door heat exchangers (RDHX), and direct-to-chip cooling to effectively dissipate the heat load. Data centers will also experiment with emerging techniques such as microfluidic systems and microconvective technologies. 

Data center operators that don’t have the means or the time to implement liquid cooling themselves can work with AI-enabled cloud providers instead. These providers offer remote access to high-performance GPU chipsets that are essential for AI. This gives businesses the power to build their AI applications without the sunk cost of investing in the associated infrastructure.

Data Centers Will Increase Their Sustainability Efforts

The data center industry has a major influence on sustainability and decarbonization. However, growing power and cooling demands are hindering the industry’s efforts to drive toward net-zero emissions goals. Data centers need a multipronged approach to make their facilities more sustainable.

These strategies begin with the design and construction process and the use of modular and “green” building materials. Data centers are also implementing more efficient power and cooling systems. Renewable energy, responsible water use, and circular economy practices will help data centers reduce environmental impacts. Data centers will also use AI to optimize utilization and energy use.

Data Centers Must Remain Flexible and Adaptable

Data center operators must adapt their facilities and business models to weather these disruptive forces. An immediate need is to respond to supply chain challenges by keeping more products in stock and identifying suppliers with the agility to meet project timelines. 

Operators must also look for new solutions to accommodate increasing power densities, weight loads, and cooling requirements. As if this dynamic weren’t enough, they must remain aware of revolutionary technologies such as quantum computing that promise to further transform the industry.

Enconnex: Helping Data Centers Navigate These Trends

Enconnex offers an array of solutions to help data center developers and operators navigate these trends:

  • Our racks, cabinets and accessories, including our flagship InfiniRack data center cabinet, provide the flexibility to meet specific requirements without sacrificing quality, durability or operational efficiency.
  • Our EdgeRack Micro Data Centers are self-contained units with up to 8 kW of integrated power, ready for deployment in virtually any location or environment.
  • Our PDUs and UPSs deliver dependable power along with remote monitoring capabilities. Through our partnerships, we also offer overhead and under-floor cable management systems.
  • Our aisle containment solutions help eliminate hotspots and improve the overall potential of data center air conditioning systems.

Enconnex keeps many of these products in stock in our Reno, Nev., manufacturing and warehouse facility with global fulfillment capabilities. We are also known for innovation and the ability to respond to specific customer requirements. Contact one of our data center infrastructure specialists to discuss your needs, objectives and challenges.


Posted by Dave Bercovich on February 10, 2025

Dave has 20 years of data center and IT infrastructure sales experience. He has represented manufacturing organizations such as Avaya, Server Technology, & The Siemon Company. As Sales Director with Enconnex, he builds relationships and grows the Enconnex business working with partners, and resellers.

Tags: Data Center

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