In a new publication, Altitude’s team looks at how the rapid growth of data centres is creating new challenges for infrastructure and climate resilience. Across the United States, a new generation of data centres is being built to meet rapidly growing demand for cloud computing and artificial intelligence. This expansion requires enormous amounts of electricity, water and physical infrastructure, at a time when many of those resources are already under pressure. The key question is whether today’s data centres will remain resilient, efficient and economically viable in the face of growing climate risks.
AI growth is creating a new infrastructure challenge
Investment is accelerating at remarkable speed. Global demand for data centre capacity could more than triple by 2030, while global capital expenditure could reach $7 trillion, with more than 40% concentrated in the United States.
But this growth also brings new challenges, as ageing US power infrastructure faces rising electricity demand while data centres require significant amounts of both power and water, with the largest consuming up to five million gallons of water per day. This makes location critical, as data centres need reliable access to electricity and water throughout their lifetime.
Climate risks are operational and financial risks
Heat, water stress and flooding are already changing the risk equation.
An Altitude assessment of a facility in Data Center Alley, explored in detail in the publication available to download below, shows how quickly conditions could evolve. Under a high-emissions scenario, the site could experience more than 22 additional days per year above 35°C by 2050 compared with 2000. Another assessment in Mesa identifies high water stress, with regional demand projected to reach twice the locally available renewable supply by 2030 under the same scenario.More extreme heat means greater cooling needs and electricity consumption. Water scarcity can constrain cooling systems and make alternative technologies necessary. Flooding can damage infrastructure, interrupt power and connectivity, and prevent staff from reaching a site.
Climate adaptation needs to be part of the investment equation
The risk is that some data centres built for today’s demand become increasingly expensive or difficult to operate tomorrow.
IRead the full publication for a practical view of climate adaptation for investors and operators, covering key decisions around siting, cooling, energy sourcing, compliance and long-term asset management.
Altitude’s objective is to support clearer, more structured decision making at both asset and portfolio level. For investors and operators, this means a shift in perspective. As data centres become more important to the digital economy, their ability to cope with climate risks and resource constraints will increasingly be part of what determines their long-term competitiveness and value.
