The data centre industry faces increased power demand challenges due to AI adoption, claims Iomart.
- Iomart CEO Lucy Dimes highlights significant power needs as a limiting factor for data centres.
- UK’s data infrastructure sees over £25bn private sector investment since July, says Labour.
- Access to enhanced power supply remains crucial for meeting data centre demands, adds Dimes.
- Iomart reports unchanged revenue but a 77% drop in pre-tax profit in the latest half-year results.
The rise in artificial intelligence technology has led to a substantial increase in power demands for data centres, according to Iomart, a cloud solutions group founded in Glasgow. Iomart’s CEO, Lucy Dimes, shared with UKTN that while AI discussions began in 2022, the effects on power needs have become noticeable only recently. She remarks on the industry trend where technologies at the ‘hype’ stage eventually transform into monetizable opportunities.
Since its inception in 1998, and subsequent listing in London in 2000, Iomart has managed these evolving demands, although it now sees energy requirements as a primary concern for the sector. Dimes emphasizes that heightened power needs could be a significant limitation if demand continues to rise significantly.
The UK’s commitment to data infrastructure has been evident, particularly since AI’s economic potential became recognized. Since Labour’s recent governance, private sector investments exceeding £25bn, primarily from US technology firms, have reinforced this trajectory. UK Technology Secretary Peter Kyle termed it a ‘vote of confidence’ in the nation’s approach to fostering business-led growth.
Despite such investments, access to enhanced power supply for data centres remains pivotal. Dimes elaborates on the challenges of securing increased power, noting the inadequacy of merely connecting to the existing network. “You have to ensure that the power supply into your data centres is set up for that,” she advises.
Iomart’s recent financial disclosures for the six months ending 30 September 2024 reveal stagnant revenue at £62m but a sharp decline in pre-tax profit by 77%, down to £1m. Dimes characterizes the period as challenging yet expresses optimism due to the acquisition of Atech for £57m, which boosts confidence in future performance.
The ongoing rise of AI underlines the urgent need for robust power solutions in data centres.
