Data Centers in 2035

Datacenter emergence

Between the 1950s and now, data centers went from an IT novelty to being a critical utility.

Different data center models serving divergent needs

Many newcomers incorrectly assume one data center is much like another. Although all process data in some way, there are often few customer or tech overlaps between a hyperscale data center and a Micro-Edge device. At the PTC we have found that there are more strategic factors ahead of pure data center nomenclature for stakeholders including investors, customers, or suppliers to consider. Often these factors are highly interdependent.

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Current data centers

Advancements in GPU-driven data processing are accelerating innovation, leading to more complex and high-cost data service models. Rapid tech evolution may render many data centers obsolete due to structural limitations. Additionally, high-performance computing (HPC) is increasing server waste, raising concerns about energy efficiency and future sustainability.

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Techs that can deliver value today

Some tech, although new, has already demonstrated sufficient traction and payback potential to deliver real value now for new data centers or retrofits of legacy premises.

• Fiber Optics – Despite 5G, cables remain the most effective for heavy data transfer, with optimized routing and management improving connectivity.
• Software Defined Networks (SDNs) – Enable dynamic load balancing, reduce latency, and enhance network resilience for enterprise needs.
• High-Performance Computing Cooling – Innovations in cooling methods like liquid-air and immersion reduce costs and increase rack density.
• UPS/Batteries – Advances in battery and UPS systems enhance resilience, offering both short- and long-duration backup options.
• Energy Management Systems (EMS) – Integrating EMS with a virtual power plant reduces costs, stabilizes grids, and boosts renewable energy use.

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Biggest changes between now and 2025

Whilst many of the new technologies are aimed at augmenting today's data services models, some will disrupt + fracture the traditional way.

Summary of their disruption potential:

1. Fusion and fission power: clean, high-density, independent energy
2. Modular data centers: rapid deployment of AI-ready edge infrastructure
3. Quantum communication: impenetrable, eavesdrop-proof network security
4. Processing units: advanced chips for AI, neural, and quantum computing
5. Network-as-a-Service: Access to high-cost applications (including quantum) via shared infrastructure

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Impact for stakeholders

Data centers will increasingly seek energy independence by integrating their own power production with the wider grid. Market consolidation will drive enhanced interconnectivity, enabling larger operators to offer seamless global-to-local network solutions. Data storage will become more segmented, with critical data kept on-premises while processing is augmented through the network. AI models, facing high computing demands, will shift toward smaller, more focused datasets to improve efficiency.

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Data centers as a utility need

Depending on the role within the ecosystem, technology has a different intrinsic impact on adoption. What we have seen in working with clients in all roles however is the desire for clear benefit from technology and a greater understanding of the overlap between the roles. The days of an investor wilfully ignoring an operator are thankfully gone as the impact on yield, returns, and tenancy retention are mutually shared so understanding the impact of the tech stack is a shared need.

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Read the full report here. For more insights on data center, please visit: www.theptc.com/data-centers