When people read screen text, watch online videos, use cloud storage services, or interact with artificial intelligence (AI), all this data relies on a special "digital warehouse"—data centers for storage, processing, and transmission. A recent report on the World Economic Forum website notes that data centers have become the core pillar of the digital economy, known as the "power heart" of the internet era, continuously supporting cloud computing, streaming media, social media, financial transactions, AI systems, and enterprise IT operations. As the global digitalization process accelerates, the world's demand for data centers is growing exponentially, triggering a construction boom worldwide.

The “Super Warehouse” of the Digital World

Data centers are like the "super warehouses" of the digital world. Instead of piled goods, they house neatly arranged servers that store, process, and transmit massive data day and night. Their scales vary significantly: the largest data centers span an area equivalent to 13 standard football fields, with servers densely packed to support millions of users simultaneously on cloud platforms.

The Gulf News website in the UAE stated in a report on April 28 that data centers have become a core component of modern infrastructure, as important as highways, bridges, and airports. They underpin all aspects of the digital economy, including electronic payments, streaming media, AI, autonomous driving, cybersecurity, and online gaming. The convenient services taken for granted by today's "digital natives" all rely on these invisible "digital hearts" behind the scenes.

Multiple studies show that data centers significantly drive economic growth. A 2023 global survey by Uptime Institute, a US business consulting firm, indicates that every $1 invested in data centers can generate $5 to $7 in economic benefits for related industries such as construction, energy, and IT services. Sustained investment in the digital economy brings not only capital but also technology, expertise, and job opportunities. McKinsey's report The Future of Digital Infrastructure (2023) points out that countries with robust data centers have more advantages in AI training, 5G/6G, fintech, biotechnology, etc., with their digital economy growing 40% faster than other regions.

As countries pay increasing attention to data sovereignty management, data centers are not only economic engines but also related to national security. Building autonomous and controllable data infrastructure can reduce external dependence and enhance network security and digital sovereignty.

Countries Embark on a Data “Gold Rush”

The Economist once noted in a report that just as oil once powered global economic prosperity, data is now becoming the new "oil"—a new energy driving the global economy. In the digital era, countries worldwide are competing to build data centers, triggering a data "gold rush".

Statistics show that as the birthplace of the internet, the US leads the world with 5,383 data centers; in Europe, Germany (522) and the UK (512) rank high; as a major digital economy, China currently operates about 450 data centers with a strong growth momentum; India is rising rapidly with over 140 data centers; the Philippines and Pakistan have 25 and 22 data centers, respectively.

Driven by the explosive growth of the digital economy, data centers are expanding at an unprecedented speed. Currently, the global data center industry is valued at approximately $242.72 billion and is expected to more than double to over $584 billion by 2032. The Financial Times predicts that this figure may even reach $624 billion by 2029.

Tech giants like Amazon, Google, Microsoft, and Meta are leading this trend, with the number of hyperscale data centers doubling approximately every five years. It is estimated that these facilities can handle over 95% of global internet traffic, ensuring real-time connectivity for billions of users, highlighting the critical role of data centers in supporting the digital economy.

With the rapid advancement of AI technology, tech companies are building AI-specific super data centers. For example, Amazon's "Project Rainier" and Meta's $10 billion AI center in Louisiana are both designed to meet the computing power needs of next-generation AI systems. Additionally, the Philippines launched VSR, its first AI-prioritized hyperscale data center, on April 23. Connected to subsea cable networks in Asia, the US, and Europe, this dedicated data center is expected to meet the cloud computing and AI needs of the country and other tech giants.

As cloud computing becomes more popular and edge computing deeply integrates with AI technology, the global demand for more powerful, intelligent, and sustainable data centers will continue to rise.

Facing Environmental and Regulatory Challenges

Despite the ongoing global data center investment boom, the industry is facing increasingly severe regulatory, environmental, and infrastructure challenges, which may become "stumbling blocks" on its expansion path. Because these massive facilities are also astonishingly energy-intensive "power hogs".

One of the most pressing issues is energy consumption. Currently, data centers account for 1% to 1.5% of global electricity consumption. With the explosive growth of AI and cloud services, this figure is expected to rise significantly. Although tech giants are actively investing in renewable energy and adopting innovative technologies like liquid cooling and waterless cooling, governments worldwide still face pressure to ensure the industry's sustainable development. In some regions with overburdened power grids or prominent environmental issues, approvals for new data centers have even been stalled.

The International Energy Agency (IEA) emphasizes that energy-efficient data centers are the key to balancing digital expansion and climate goals. Countries investing in green data centers can not only promote the digital economy but also reduce carbon emissions, thus gaining a leading position in global technological competition.

Another major challenge is regulatory complexity. Increasingly strict data sovereignty regulations and cross-border data flow restrictions are forming a fragmented regulatory landscape. Enterprises are required to store and process data within national borders, which not only drives up operating costs but also creates "data silos", limiting enterprises' access to more efficient and economical global resources.

The data center industry is also caught in geopolitical whirlwinds: access to critical components such as superconductors and optical fibers has become a national strategic issue, affected by multiple factors such as export controls, industrial policies, and supply chain disruptions.

The World Economic Forum website emphasizes in its report that facing the continuously growing global demand and increasingly complex construction obstacles, there is an urgent need to formulate a forward-looking and coordinated policy framework to fully unleash the potential of the digital economy while ensuring sustainable development.