Looking Ahead to 2025: A View from Darren Watkins

The Data Centre industry has parallels to Formula One, where cutting edge technology that is designed, built and utilised to solve immediate problems can in fact assist wider society over time.

Written by Darren Watkins, Chief Revenue Officer, VIRTUS Published 2025-01-14 09:30:39

As we approach 2025, the data centre industry stands at a pivotal juncture, poised for significant transformation. Accelerating technological advances in areas such as artificial intelligence (AI), edge computing, and sustainability are reshaping the role data centres play in supporting global business. As we move forward, data centre operators and stakeholders must prepare for a future that demands greater flexibility, efficiency, and innovation. Here’s what we can expect in the coming years as the industry adapts to these shifts.

 

AI and the Growing Need for Flexible Infrastructure

AI is no longer just a buzzword; we have all seen that it’s fast revolutionising how businesses operate, driving demand for vast data processing power. Whether it’s AI-enhanced customer service, complex machine learning algorithms, or real-time data analytics, more businesses are relying on data centres to handle demanding, high-performance workloads.

For data centre providers, this means developing infrastructure that can support flexible, scalable AI solutions. AI tasks require robust power, ultra-low-latency connections, and the ability to rapidly scale as demand fluctuates. To meet these requirements, operators like VIRTUS are designing facilities that are "AI-ready"—optimised for the high-speed, high-capacity needs of next-generation technologies. As the demand for AI-driven services continues to grow, the industry will need to prioritise agility, scalability, and the ability to support complex workloads in an increasingly data-driven world.

 

Sustainability: Beyond Energy Efficiency

Sustainability remains a top priority for the data centre industry, especially in light of its significant energy consumption. However, the conversation is expanding beyond just reducing energy usage. A broader, more integrated approach to sustainability is emerging, with data centres becoming key players in the effort to build a more sustainable future.

It’s no longer just about energy efficiency; it's about rethinking how data centres contribute to the wider environmental picture. Expect to see more facilities using waste heat for district heating or locating in areas with abundant renewable energy sources. Circular economy models, where resources and energy are reused or repurposed, are also gaining traction. This shift toward carbon-neutral operations will continue to grow, and businesses will need to choose partners who not only prioritise energy efficiency but also long-term sustainability.

 

Edge Computing: Bringing Data Closer to Home

As the Internet of Things (IoT) and smart cities continue to expand, real-time data processing becomes even more crucial. Edge computing offers a solution by decentralising data processing, bringing it closer to where it's needed most. This reduces latency and ensures faster, more efficient performance, particularly for applications like autonomous vehicles, industrial automation, and augmented reality.

Edge computing will complement traditional, large-scale data centres, creating a hybrid infrastructure that caters to diverse business needs. By placing small, distributed data centres closer to end users, businesses can ensure quicker response times and meet the rising demand for latency-sensitive applications. In the coming years, this decentralisation of infrastructure will transform the landscape of data centre networks, with new edge sites emerging across Europe and beyond.

 

The Impact of Data Sovereignty

As data protection regulations, such as the GDPR, continue to evolve, the concept of data sovereignty is gaining prominence. This refers to the need for businesses to store data in compliance with local laws and regulations, an increasingly important issue in Europe, where data localisation is a key concern.

To address these growing concerns, data centre operators will be pressured to develop more regionalised infrastructure. Businesses will need to store data closer to home to comply with national and regional laws while ensuring that they can still access the high performance, security, and scalability that modern applications require. This trend will be particularly significant for companies with pan-European operations, as data sovereignty regulations shape how they store and manage sensitive information.

 

Automation and AI: Revolutionising Data Centre Operations

In parallel with the increasing demand for AI and other advanced technologies, the data centre industry is also undergoing a transformation in how it manages operations. Automation and AI are driving efficiencies, enabling more intelligent, self-optimising systems.

AI-driven technologies are already being used to monitor infrastructure in real time, predict maintenance needs, and optimise resource usage. These systems can dynamically allocate resources based on demand, helping data centres scale quickly and efficiently. This is not just about improving operational efficiency; it’s also about reducing energy consumption, a critical factor for maintaining sustainability goals. In the near future, we can expect data centres to be increasingly self-sufficient, with AI handling routine tasks and managing complex operations autonomously.

 

Embracing the Future: The Road Way Ahead

Looking to the future, we’re on the brink of even more transformative changes in the data centre industry. While AI, edge computing, and sustainability are already reshaping the landscape, innovations in energy and infrastructure are poised to push the industry even further.

For example, small modular reactors (SMRs) are becoming an area of interest for major hyperscale companies, offering scalable, clean energy options that could power data centres in ways we haven’t seen before. With SMRs, businesses may soon have access to secure, sustainable energy sources that directly align with global decarbonisation goals. Additionally, concepts like data centres in space—where solar energy is constantly available and abundant—are gaining traction. These developments could make it possible to deploy data centres in orbit, dramatically reducing energy costs and supporting large-scale, energy-hungry tasks like training AI models.

Networking infrastructure is also undergoing major advancements. The development of hollow core fibre optics and passive optical switches could allow for faster, more efficient data transmission, reducing latency and extending the range of high-speed data across networks. These breakthroughs will unlock new opportunities for connecting data centres and creating more robust, low-latency environments.

As we look ahead, the possibilities are virtually limitless. Quantum computing, which promises to be orders of magnitude faster than current supercomputers, may soon revolutionise how we process data, making today’s challenges look like small hurdles in comparison.

The road ahead is one of rapid evolution and innovation. Data centres are at the heart of this transformation, and those who can adapt to these emerging technologies and trends will be best positioned to lead in a new era of digital infrastructure.