This short paper explores the opportunities and risks associated with the burgeoning demand for data centre build out, with implications for the energy sector and investors.
As the world rushes to support the rise of AI and compute-heavy applications, demand for data centres is surging. And with that comes a sharp increase in energy needs – something we haven’t seen at this scale in developed economies since the 1980s.
Today’s data centres aren’t just bigger – they’re being built faster, often without enough consideration for long-term sustainability. But this isn’t just a challenge. It’s also an opportunity.
Unlike previous decades where energy efficiency meant doing more with less, we’re now facing new energy demand from scratch. That creates space to reimagine the entire energy system: how it’s designed, how it’s scaled, and how sustainable it can become. The sheer speed and size of investment in digital infrastructure is the lever.
The buildout of data centres cuts across markets and sectors. That opens up a wide set of investment opportunities – from low-risk infrastructure to cutting-edge frontier tech. Many of these investments also align with sustainability goals. Think: high-efficiency chip design, cooling and water management tech, or low-carbon construction solutions.
AI and compute are creating long-term structural demand, and the systems we build now will shape how sustainable, resilient, and scalable our energy future really is. It’s not just about keeping up with demand – it’s a chance to shape what comes next.
