The digital age, driven by cloud computing, artificial intelligence (AI) and the universal need for internet connectivity, has sharply increased energy demand for data centres. In early 2024, over 11,000 data centres were registered globally, with server installations rising by around 4% annually between 2010 and 2020, according to the International Energy Agency (IEA).

But, perhaps contrary to common perception, projections show that energy demand from data centres will not grow as much as sectors like transport and industry.

According to the IEA, data centres account for about 1% to 1.3% of global electricity use. Rising demand for AI applications is emerging as a key growth driver, forcing major data centre operators to explore low-carbon nuclear energy options, particularly small modular reactors (SMRs), for providing the “always on” baseload power they need.