New research from Singapore-based M Capital Group paints a stark picture of a data-centre landscape undergoing rapid transformation. The report, Data Centres – Breathtaking Drive: Exhausting Energy, Water and Brains, argues that artificial intelligence, digital sovereignty and infrastructure expansion are forcing a “once-in-a-generation structural realignment” in how and where data is processed.

Global data-centre market value is forecast to reach $387 billion by the end of 2025, with hyperscalers and sovereign-backed providers racing to build AI-ready facilities capable of supporting trillion-parameter models. M Capital warns that AI workloads alone could account for nearly half of global data-centre electricity use by year-end. To meet demand, operators are embracing advanced cooling, denser server racks and localisation-compliant designs.

“The AI era will not be cloud-native. It will be infrastructure-native,” said Christian Mouchbahani, Managing Partner at M Capital Group. “Those who can localise, optimise and operationalise at scale will define the next two decades of digital power brains.”

That scale comes with growing energy and regulatory challenges. According to the International Energy Agency, global electricity use by data centres could hit 945 TWh by 2030—about 3% of total demand. Accelerated servers driven by AI are expected to dominate the increase. While efficiency improvements may offset some of the impact, the sector’s power needs are climbing, raising the stakes for clean-energy sourcing and grid planning.

Independent forecasts echo these concerns. Analysis by Digiconomist’s Alex de Vries-Gao suggests AI could drive data centres to consume nearly 49% of their total electricity use by the end of 2025, excluding crypto-mining. He links the surge to GPU power draw and cooling requirements, cautioning that regulatory changes or tech breakthroughs could still shift the trajectory.

Deloitte’s 2025 Predictions note that generative AI could significantly escalate electricity demand unless the industry accelerates innovations in efficiency and clean-energy integration. The consultancy highlights the need for alignment across tech providers, utilities and governments to balance performance with sustainability. The Middle East is emerging as a key growth zone. PwC reports that regional capacity could triple by 2030, led by sovereign investment in the UAE and Saudi Arabia. National initiatives, strategic partnerships and abundant energy are drawing hyperscalers and regional players, though challenges remain in talent, supply chains and grid capacity. Reuters adds that access to advanced semiconductors and international collaboration will be vital to realising the Gulf’s AI ambitions.

One major project already underway is Equinix’s planned $1 billion investment in a Saudi data centre, delivering 100 MW of capacity in Jeddah. Unveiled at Riyadh’s Leap summit, the initiative reflects how global firms are aligning with regional strategies to position themselves at the heart of AI infrastructure growth.

The UK faces a parallel opportunity. Industry analysts say the convergence of rising AI demand, sovereign data policies and sustainable infrastructure creates an opening for Britain to lead. A strong science base, dynamic energy networks and supportive regulation could attract AI-focused investment, provided the country couples growth with stringent data governance, low-emission energy and next-generation cooling.

Yet the path forward is not without friction. Higher density systems will increase both power and water use. Managing this impact will require progress in energy efficiency, water stewardship and workforce development. Skills in system design, operations and optimisation will be crucial as complexity scales.

The trajectory is clear: smarter energy, smarter cooling and smarter regulation will define how responsibly the digital infrastructure of AI develops. The sector is more than a story of growth. It is a test of whether innovation can expand in step with resilience, accountability and climate goals. If the UK seizes this moment, it can help shape a future where data centres power progress without exhausting the systems that sustain it.

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