2026 Data Center Trend Forecast Series – Part 1 of 4
As 2026 draws near, artificial intelligence (AI) continues to transform the global data center landscape at an unprecedented pace. In this four-part series, we explore the core trends defining the industry’s next chapter. This first installment examines how AI is reshaping data center infrastructure and technology—from surging power demands and hyperscale evolution to cooling innovations and even space-based data centers.
Read also: Understanding AI Data Centers: Key Specifications and Hardware
A Surge in Power Demand Like Never Before
AI workloads demand vastly more computing power than traditional applications, largely due to the use of GPUs and high-performance accelerator servers. According to the International Energy Agency (IEA), global data center electricity consumption is projected to approach 1,050 terawatt-hours (TWh) by 2026—making data centers the fifth-largest electricity consumer worldwide.
In recent years, AI has accounted for roughly 5–15% of total data center power use, a figure that could rise to 35–50% by 2030 under high-growth scenarios. In the U.S. alone, data centers consumed around 4% of national electricity in 2024, with demand expected to more than double by 2030—driven primarily by the AI boom.
Research from MIT News suggests that AI-optimized data centers could require up to 90 TWh of electricity annually by 2026. More strikingly, an analysis from MIT Sloan found that global AI data centers might consume as much as 21% of the world’s total energy if the delivery of AI services to end users is included. These factors are propelling the rise of hyperscale data centers—massive facilities capable of handling hundreds of megawatts to power AI’s exponential growth.
Hyperscale Evolution: Bigger, Smarter, and More Flexible
AI isn’t just consuming more power—it’s redefining the structure of the modern data center. Deloitte projects that power demand from AI data centers in the U.S. could grow more than thirtyfold to 123 gigawatts (GW) by 2035, fueling the next generation of modular, flexible hyperscale designs.
Tech giants such as Alphabet, Amazon, Microsoft, and Meta are at the forefront of this wave, investing more than US$350 billion in data center construction this year and up to US$400 billion by 2026. These hyperscale sites are built to manage massive AI workloads—particularly for training and deploying large language models. Structure Research predicts that by 2026, hyperscale facilities will form the backbone of global cloud and edge computing infrastructure, supporting rapid AI-driven expansion.
Architecturally, composable infrastructures are also on the rise, allowing resources like GPUs to be dynamically allocated across workloads for optimal efficiency. In Indonesia, providers like EDGE DC are following this global trend, developing hyperscale facilities equipped for scalable AI operations backed by advanced technologies.
Powering the Future Sustainably
The industry’s energy transformation is still underway. Today, most data centers draw power from national grids that remain heavily reliant on fossil fuels. The IEA estimates that coal and natural gas will supply more than 40% of additional electricity demand from data centers through 2030.
Nonetheless, renewable sources—solar, wind, hydro, and geothermal—are rapidly gaining appeal. In the U.S., home to more than 5,400 data centers as of March 2025, clean energy adoption has become a strategic priority. In Indonesia, EDGE DC is leading by example through its use of Renewable Energy Certificates (RECs) from state utility PLN, sourced from geothermal power.
The Cooling Revolution
As rack power density rises beyond 100 kW per rack in AI environments, traditional air cooling can no longer keep up. Liquid cooling technologies—such as direct-to-chip and immersion systems—are emerging as the new standard, offering energy efficiency improvements of 30–50%.
Industry leaders including Schneider Electric, Vertiv, and LiquidStack are driving innovation in this space. Across the Asia-Pacific region, adoption of advanced cooling methods is accelerating. EDGE DC, for example, implemented Nortek’s StatePoint® Liquid Cooling System at its 23 MW EDGE2 facility—making it Indonesia’s first data center to use indirect evaporative cooling with a semi-permeable membrane. The system dramatically reduces both electricity and water consumption and performs well in hot, humid tropical climates.
Hybrid liquid cooling can also cut water usage by as much as 90% in arid regions—an essential advantage where water scarcity is a serious issue.
Read also: How Generative AI Is Transforming Data Centers
Thinking Beyond Earth: Space-Based Data Centers
As AI demand skyrockets, engineers are looking beyond the planet for solutions. Google’s Project Suncatcher is exploring the concept of space-based AI infrastructure, deploying TPU chips in orbit to harness limitless solar energy and escape the constraints of terrestrial power and space.
Developed in collaboration with Planet Labs, the project aims to launch its first test hardware in early 2027. The design envisions a constellation of 81 interconnected satellites linked by optical communication channels, forming a kilometer-long computing array. This visionary initiative could reduce energy costs up to tenfold compared to ground-based data centers—though challenges such as cooling in a vacuum and communication delays must still be solved.
Conclusion
AI is propelling data center innovation to new heights—powering the growth of ever-larger hyperscale facilities, smarter cooling systems, and bold new frontiers like orbital computing.
For data center operators, the path forward lies in hyperscale scalability, adoption of cutting-edge technologies, and exploration of unconventional locations. As AI continues to dominate digital infrastructure by 2026, the combination of explosive growth and relentless innovation will define a stronger, more resilient, and adaptive global data ecosystem.
