It’s one of the big challenges facing developed economies; where do we build all those data centres that are needed to power AI, and how do we generate the extra electricity? Politicians don’t seem to have any convincing answers and there’s a distinct lack of urgency in building power stations in the UK in particular. Outsourcing this data handling might prove as damaging to the UK economy as outsourcing coal, oil and steel production over the last 30 years.
This new report looks at some of the trends driving demand upon the digital infrastructure;
AI’s explosive growth is set to trigger a 60% surge in energy demand by 2028, according to a new Economist Impact report, sponsored by FM, one of the world’s leading commercial property insurers. The study warns that without urgent action, global digital infrastructure could face mounting pressure from unprecedented power needs. The report, “Foundations at risk: assessing the resilience of data centres and digital infrastructure,” highlights several emerging trends, including:
- AI-related energy demand is expected to surge 60% by 2028.
- Data centre capacity is predicted to triple between now and 2030.
- Electricity consumption from data centres alone is expected to more than double from current levels by 2030, reaching 945 TWh worldwide.
Although AI energy consumption is growing at a slower rate than capacity, the doubling of data centre electricity use still places enormous strain on power grids, especially as overall global electricity consumption is already forecast to grow exponentially in the next few years, according to the International Energy Agency.
This is compounded by the unpredictability of AI workloads, limited scalability of cooling and water infrastructure and regional clustering in hubs such as London and Virginia, all of which can create critical bottlenecks and vulnerabilities.
“Our research underscores the reality that as AI adoption accelerates, the resilience of our digital infrastructure faces a critical test,” said Jonathan Birdwell, Global Head, Policy & Insights at Economist Impact. “Rising energy demand, heightened cybersecurity threats, and grid instability are converging to create systemic risks that can no longer be ignored.”
“Digital infrastructure is evolving at an extraordinary pace, and with it comes a new era of risk,” said Adrian Oxley, principal engineer, semiconductor / digital at FM. “Protecting your infrastructure while keeping up with the astonishing pace of data centre development is challenging. By including risk mitigation strategies from design through construction, companies can build resilience into their operations from the beginning. At FM, we use engineering insights and research-backed strategies to design clients’ resilience from the start.”
To address risks that could impede the sector’s projected growth and impact infrastructure resilience – and how businesses can future-proof their operations, FM offers clients:
- FM’s climate resilience solutions
FM’s Climate Resilience Tracker helps clients assess site-specific exposure to climate hazards like flooding, wildfire, and wind—critical as data centres increasingly locate in high-risk regions. By integrating engineering insights and predictive modelling, FM enables businesses to design for long-term resilience from the outset. This proactive approach helps mitigate operational disruptions and safeguard investor confidence. - FM’s power generation expertise
FM’s deep expertise in power generation supports clients navigating grid instability and energy transition risks. From backup systems to energy optimization, FM helps data centres integrate resilient power infrastructure, including battery energy storage systems (BESS), while minimizing fire and thermal hazards. This ensures continuity even as AI workloads strain traditional energy systems. - FM Renewables
FM Renewables helps developers build resilience into renewable energy assets from design through operation—essential as these assets face 20–30 years of evolving risks. With guidance on supply chain vulnerabilities, sparing strategies, and contingency planning, FM supports clients racing to meet build deadlines amid climate volatility and resource constraints. Its new operational policy in EMEA addresses emerging tech and climate risks, helping future-proof energy infrastructure.
To view the full report, click here.
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