NTT DATA, a global leader in AI, digital business and technology services, today released Can Data Centers Keep Pace with AI? A Global Data Center Outlook, a report examining whether the infrastructure required to support the next wave of artificial intelligence can scale fast enough to meet demand. Developed in partnership with NTT Global Data Centers and economic consultancy ThoughtLab, the report models three scenarios for global data center expansion through 2030.
AI data center demand expected to grow 23-30% annually through 2030.
Power availability and grid connections decisive constraints in US and Europe.
Processors, transformers, switchgear, and generators emerging as choke points.
Community opposition and land constraints delaying approvals in prime markets.
Report provides roadmap for enterprises, operators, investors, and policymakers.
NTT DATA is $30B+ business and technology services leader.
Power availability and grid connections are becoming decisive constraints in major markets, particularly in the United States and Europe. Processors, transformers, switchgear and backup generators are emerging as significant choke points, with long lead times and limited manufacturing capacity affecting how quickly new projects can be fitted out and energized. Rising community opposition and land constraints are delaying approvals in prime markets, while shortages in specialized construction labor are increasing execution risk and extending delivery timelines.
Doug Adams, CEO and President of NTT Global Data Centers, stated: "AI demand is accelerating faster than many parts of the underlying infrastructure system can respond. The challenge now is not simply scaling capacity, but removing the operational and supply-side constraints that delay deployment and erode the economics of AI investment. This report is intended to help the market move from recognizing the challenges to acting on practical solutions."
The report recommends co-planning power and grid infrastructure with utilities early to align new projects with generation, transmission, storage and interconnection realities before bottlenecks delay deployment; strengthening supply-chain resilience by diversifying suppliers, securing longer-term procurement agreements, standardizing equipment specifications and treating long-lead components as strategic priorities; driving efficiency-focused innovation through advanced cooling, workload optimization, liquid and direct-to-chip cooling and AI-enabled operations; setting stronger and more transparent performance benchmarks including more consistent use of power usage effectiveness (PUE) and water usage effectiveness (WUE); and improving community engagement and siting strategy.
Adams added: "AI infrastructure demand is no longer a future scenario. It is here now. The organizations that move fastest over the next several years will be those that understand where the real constraints are, act early to mitigate them, and build with efficiency, resilience and long-term value creation in mind." The report argues that these constraints are addressable with coordinated action across enterprises, operators, investors, and policymakers.
About NTT DATA
NTT DATA is a $30+ billion business and technology services leader, serving 75% of the Fortune Global 100. We are committed to accelerating client success and positively impacting society through responsible innovation. We are one of the world's leading AI and digital infrastructure providers, with unmatched capabilities in enterprise-scale AI, cloud, security, connectivity, data centers and application services. Our consulting and industry solutions help organizations and society move confidently and sustainably into the digital future. As a Global Top Employer, we have experts in more than 70 countries. NTT DATA is part of NTT Group, which invests over $3 billion each year in R&D.
