At last week’s DCAC Europe 2025 conference in Dublin, attended by James Preston and Matthew Turley, one of the most pressing topics of conversation was the looming energy challenge facing the data centre industry.
In line with a recent report by the International Energy Agency (IEA), as covered by Sky News, the global electricity demand from data centres is expected to double within the next five years, a staggering shift with major implications for infrastructure, sustainability, and power generation strategy.
At Preston Recruitment, we’ve long been immersed in the data centre sector, and this emerging energy crunch marks a pivotal moment for everyone from construction and engineering professionals to operators and investors.
Ai is a power-hungry game-changer
As noted by Sky News and the IEA, much of the projected surge in power demand stems from the rapid rise of artificial intelligence. Training large AI models like GPT-4 can consume tens of gigawatt hours of electricity, enough to power tens of thousands of homes. And that’s just training. The energy needed for AI inference, and actually running the models is also significant.
To put it in perspective: creating a six-second video using an AI model can use eight times more power than charging a phone, or nearly twice as much as charging a laptop.
With tech giants building ever more compute-heavy data centres around global tech hubs, including the US, Japan, and Southeast Asia, utility companies are already being pushed to the brink. A Reuters survey found that nearly half of US power providers had received requests from data companies that would exceed their current peak capacity.
The double-edged sword of Ai
The IEA’s report, which formed a cornerstone of many DCAC Europe panel discussions, highlights that AI is not only driving energy demand but could also be part of the solution. Smarter systems can optimise data centre performance, manage grid loads more intelligently, and help accelerate the transition to low-carbon energy sources.
Yet significant uncertainties remain, not least of which are geopolitical tensions. The IEA warns that US tariffs on Chinese clean energy tech, introduced after the report’s data was compiled, could stall access to affordable renewable energy infrastructure. Meanwhile, the current US administration’s emphasis on reviving coal-powered electricity raises fresh concerns about whether future capacity can be expanded sustainably or even on time.
What this means for talent and development
As recruiters deeply involved in the data centre space, Preston Recruitment is witnessing firsthand the shift in required skills and project priorities.
There is surging demand for professionals who understand energy efficiency, grid integration, and sustainable construction. Organisations are now not only building for scale but designing with power usage effectiveness (PUE), emissions targets, and regulatory compliance in mind.
The findings from the IEA, as shared by Sky News and discussed in depth at DCAC Europe, serve as a wake-up call. The convergence of AI, data centre growth, and global energy challenges represents both a critical risk and a unique opportunity.
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It’s clear that the data centre industry must now evolve in tandem with the energy sector. Those that can build and operate smarter, cleaner, and more efficiently will be the ones best placed to thrive in the decade ahead.
Preston Recruitment will continue to support the organisations and professionals shaping this transition, because the future of data infrastructure depends not just on how we build, but how we power what we build.