KKR Infrastructure Review | Looming Digital Power Crisis as AI Drives Data Center Demand
- Editor
- Nov 1, 2024
- 1 min read
What's new: KKR's latest infrastructure report reveals a critical convergence of digitalization and energy transition, as data centers struggle to secure enough power for AI-driven operations, with demand projected to triple by 2030.
Why it matters: This power supply bottleneck threatens to slow the AI revolution and digital transformation, creating both challenges and opportunities for infrastructure investors as the market races to bridge an estimated $15 billion investment gap per major data center campus.
The Big Picture:
Data center capacity must double in six years what took two decades to build, as AI workloads drive power density requirements from 17KW to 30KW per rack by 2027
Traditional power grids are buckling under pressure, with some regions like Dublin implementing moratoriums on new data centers
The solution requires a complex mix of renewable energy, conventional power, and creative approaches like behind-the-meter generation
By The Numbers:
Global data center power demand forecast: 171-298 gigawatts by 2030, up from 60 GW today
Typical new data center campus requires 300-500 MW of power and $15B+ investment
U.S. needs 47,300 gigawatt-miles of additional transmission infrastructure by 2035 (57% increase)
Key Trends to Watch:
Emergence of "digital gateway cities" like Columbus and Atlanta attracting tech firms due to abundant power supplies
Strategic partnerships forming between data center operators and power companies to solve the energy crisis
Rise of creative solutions including on-site power generation and small modular nuclear reactors
The Bottom Line for Investors: The digital power crisis presents a massive opportunity for infrastructure investors with scaled capital and technical expertise.
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