Data centres – time to open up?

When it comes to digital transformation, data centres have emerged as the foundation for the IT infrastructures that power our daily lives. Every online interaction, every cloud-based application, every streamed video, and every financial transaction depends on them. Data centres sit in the background – normally only acknowledged on the rare occasion when something goes wrong. Additionally, there is a growing, negative narrative around data centre energy and water consumption, land use and overall environmental impact.

The industry is doing much to address overall operational reliability and resilience – whereby outages are increasingly rare, despite the increasing complexity of the IT resources housed within the facilities and the increasing sophistication of the bad actors who target them with cyber attacks.

When it comes to the environment, the data centre industry has made great strides in terms of improving energy and overall operational efficiency, and most, if not all, facilities are on a path towards Net Zero. That said, the current AI explosion is threatening to derail some of the environmental progress made by the sector. But this is where the industry needs to step up and explain the role it fulfils – politely pointing out that, if we are all happy to give up our digital devices, our online gaming, our hours spent on social media, our use of ChatGPT…then it will be equally happy to scale back global data centre capacity!

In other words, data centres make immense positive contributions to economies, societies, and innovation ecosystems and it is time for owners and users of data centres to step forward, embrace transparency, and communicate the many ways in which they add value to the modern world.

Data centres have become the digital utilities of our age, playing a role as essential as electricity and water infrastructure. They underpin the operation of banking systems, they provide the computing backbone for healthcare, they support government operations by housing critical public service applications. In the private sector, they are indispensable to e-commerce, telecommunications, logistics, and entertainment. Without the constant reliability of data centres, many of the services we now consider essential would grind to a halt.

The transition to cloud computing has only amplified the centrality of data centres. Enterprises increasingly rely on hybrid and multi-cloud strategies, shifting workloads to environments optimised for scalability, cost efficiency, and compliance. Behind every cloud service is a physical infrastructure of servers, networking gear, and cooling systems housed within a data centre. As edge computing gains traction to support latency-sensitive use cases, the reach of data centre infrastructure is extending further, embedding itself even more deeply into our lives. In short, data centres are not just technical facilities; they are the arteries through which the digital economy flows.

The story of modern innovation is also a story of data centres. Artificial intelligence and machine learning models require vast computational resources for training and inference. High-performance computing clusters hosted in data centres enable breakthroughs in climate modelling, drug discovery, and materials science. Genomic sequencing, which has revolutionised healthcare and pandemic response, is made possible by data centre infrastructure capable of handling massive datasets and running complex algorithms. Even the entertainment we consume, from blockbuster films rendered with CGI to immersive online gaming platforms, depends on data centre capacity to store, process, and deliver content at scale.

Without the resilience, scalability, and reliability of data centres, the pace of innovation would slow dramatically. By providing researchers, startups, and enterprises with on-demand access to high-performance infrastructure, data centres level the playing field, providing to all access to advanced technologies that were once confined to elite institutions. In doing so, they foster a culture of experimentation and discovery that fuels progress across industries.

The most common critique of data centres revolves around energy consumption. It is true that they require significant power to operate, but focusing exclusively on energy usage paints an incomplete picture. The industry has made remarkable strides in efficiency over the past decade. Moreover, data centre operators have emerged as some of the largest purchasers of renewable energy globally - signing long-term power purchase agreements that not only decarbonise their own operations but also catalyse investment in wind, solar, and hydroelectric projects. In regions like Scandinavia, data centres are already powered almost entirely by renewable sources, and waste heat is repurposed to warm local communities through district heating systems. Far from being a drag on sustainability, data centres can act as catalysts for the green transition, stimulating innovation in energy generation, storage, and grid modernisation.

The data centre narrative needs to shift from one of energy burden to one of energy efficiency and value creation.

Data centres are powerful engines of economic growth. Not only do they provide thousands of jobs in both their construction and operation (as well as supporting an ecosystem of cloud architects, software developers, and managed service providers), data centres also attract foreign investment, encouraging multinational enterprises to establish operations, with the likely development of local innovation ecosystems.

The presence of advanced data centre infrastructure also enhances a region’s competitiveness in the global digital economy. Sectors as diverse as agriculture, logistics, retail, and finance increasingly rely on data-driven insights to optimise operations and create value. By enabling digital transformation across these industries, data centres contribute directly to GDP growth. They are, in many ways, the infrastructure of economic resilience, ensuring that businesses can adapt to shifting market conditions and consumer behaviours.

The societal impact of data centres is just as significant. During the COVID-19 pandemic, the world witnessed firsthand how vital digital infrastructure had become. Remote work, online education, and telehealth services all depended on the stability and scalability of data centres. Without them, businesses would have been unable to continue operations, students would have been cut off from education, and healthcare providers would have struggled to deliver care. Data centres underpinned social resilience at a time of global crisis, earning the nickname of the ‘fourth emergency service’.

As cities embrace digital transformation, data centres also play a key role in enabling smart city initiatives. They process the data that powers intelligent transportation systems, adaptive energy grids, and advanced public safety networks. In developing regions, the deployment of edge data centres is reducing latency and enabling local populations to access global digital platforms, helping bridge the digital divide. By expanding access to connectivity and services, data centres promote inclusivity, giving more people the opportunity to participate in the digital economy.

In times of crisis, whether natural disasters or geopolitical disruptions, data centres provide continuity of service. They ensure that communications remain operational, that citizens can access critical information, and that emergency responders have the digital tools they need. This resilience is a testament to the planning and investment that goes into building and maintaining modern facilities.

Despite these contributions, the public conversation about data centres remains disproportionately focused on challenges rather than opportunities. Owners and users of data centres must recognise the importance of narrative and perception. By stepping forward and opening up about the positives they provide, they can build trust, influence policy, and shape the regulatory environment in constructive ways.

Transparency is central to this effort. Publishing sustainability reports, disclosing energy sourcing strategies, and engaging openly with local communities can foster goodwill and understanding. Highlighting the societal benefits of digital services, from supporting education to enabling healthcare innovation, helps reframe the conversation. By communicating not just what they consume but what they contribute, data centre operators can position themselves as essential partners in building a sustainable, inclusive, and resilient digital future.