Will future data centres have to be self-powered? Gartner thinks so

Gartner research warns that the surging demand for AI-driven data centres is outpacing traditional utility capacity, prompting a rapid shift towards on-site and alternative power sources, with implications for sustainability and costs.

Availability of electricity will increasingly determine which data centres thrive and which must change business models, according to new research from Gartner. The analyst firm warns that the AI-driven surge in demand has outpaced the pace at which traditional utilities can add generation capacity, leaving many new facilities unable to rely solely on grid-supplied power. ^[1][2]

Bob Johnson, a Gartner vice‑president and analyst, says “newer and larger data centers are being built at a rate that exceeds the support infrastructure that supports it – notably, the traditional power utilities’ ability to supply sufficient electricity.” Gartner’s report argues that although utilities are expanding capacity, those projects take years and will not come online fast enough to support the current build pipeline. According to the original report, that shortfall means operators will need alternative sources. ^[1][2]

Gartner predicts a rapid shift to on‑site generation: by 2028 only 40 percent of all new data centres will rely solely on power delivered via the electricity grid network. The firm therefore advises tenants to demand clear disclosures from operators about power strategies and how those choices will affect pricing and availability. “Add power sustainability to due diligence criteria of cloud services, including priority access to power and mitigation strategies in the case of limited availability,” Johnson suggests. ^[1][2]

Industry moves already underline the trend. Some operators are building dedicated gas‑fired plants to secure capacity for private sites, while completed facilities in parts of California have been unable to begin operations because the local grid cannot yet supply sufficient electricity. Major cloud players are also locking in long‑term renewable deals to shore up supply. These examples show both short‑term reliance on fossil sources and long‑term pivots toward contracted renewables. ^[5][6][7]

Gartner highlights several generation technologies that could underpin future data‑centre microgrids. Small modular reactors are presented as a potential clean base load option that could enable expansion independent of the grid, and the firm notes Microsoft’s deal to acquire fusion‑produced energy as an indicator of long‑term possibilities. Hydrogen fuel cells are cited as a technology already viable at scale but, in current implementations that rely on natural gas, one that produces significant greenhouse gases unless “green hydrogen” produced from renewables is used. ^[1][4]

The analyst firm emphasises that data centres will be early adopters of emerging clean power technologies and that initial costs will be high. “Data center operators will be in the forefront of adopters for new emerging clean power generation technologies. However, like any first adopters, initial costs of these technologies will be high,” Gartner says, adding that initial users should expect to shoulder those costs , expenses that will probably be passed on to cloud and software customers. ^[1]

For organisations evaluating cloud and colocation options, Gartner’s guidance is clear: include power availability, sourcing and sustainability in procurement and pricing discussions now. Industry data and recent projects show the consequences of ignoring those factors include delayed commissioning, higher costs and exposure to future supply‑driven price rises. Tenants that insist on transparent power strategies and contractual protections stand a better chance of securing reliable, cost‑stable capacity. ^[2][5][6][7]

📌 Reference Map:

Reference Map:

• ^[1] (The Register) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 5, Paragraph 6
• ^[2] (Gartner report summary) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 7
• ^[3] (Gartner press release 2024) – Paragraph 2
• ^[4] (Gartner press release on SMRs) – Paragraph 5
• ^[5] (Route Fifty) – Paragraph 4, Paragraph 7
• ^[6] (Tom’s Hardware , Santa Clara) – Paragraph 4, Paragraph 7
• ^[7] (Tom’s Hardware , Google solar deal) – Paragraph 4, Paragraph 7

Source: Fuse Wire Services