Report

data centers in 2035

How will data centers evolve?

April 18, 2025
6 minute read

In brief

01

Data centers are evolving from isolated IT infrastructure to essential, interconnected components of modern digital economies.

02

Originally propelled by the rise of cloud storage, data centers are entering a new era shaped by AI, energy transformation, and shifting roles across the ecosystem.

03

The future model is expected to be a decentralized yet unified grid of centers, designed for different functions but operating as a connected offering.
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The techs likely to disrupt the sector

Impactful change

Constant innovation is already occurring in data center technology. Big leaps forwards which will have fundamental changes on the industry are likely in:

  1. Fusion + Fission Power
  2. Modular + Podular DCs
  3. Quantum Comms
  4. Procssing Units
  5. Network-as-a-Service (NaaS)

Key takeaways

The standalone data center is no longer

The traditional standalone data center is phasing out, making way for an interconnected, multi-purpose network of centers.

Roles across the value chain are evolving

Telcos, tech firms, operators, and investors are stepping into the space with a hybrid of responsibilities.

New models emerging

By 2035, data centers will function as grid-integrated, AI-optimized, and data-segmented infrastructure.

Challenges to be addressed

Energy, interconnectivity, and AI efficiency will be the most defining inputs for next-gen data center models to succeed.

Retrofits possible but challenging

To compete with newer facilities, capex-heavy upgrades or partial conversions are becoming common but may not be enough.

Techs responding to challenges

A large ecosystem of start-ups and established tech companies now exist and can drive innovation and traction.

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