Why are we building such massive data centres?

Operators say they care about sustainability while building ever-larger data centres. Is something amiss?

It's hard to miss for those watching the data centre industry - every few weeks, there's news about the groundbreaking or completion of a new data centre.

And these data centres are huge, from 50MW facilities to multi-building campuses with capacity measured in the hundreds of MWs.

Are we dooming our planet?

The efficiency of going bigger

But first, why are we building such massive, energy-guzzling data centres? The short answer: Because we need them.

Whether typical enterprise systems, public cloud infrastructure, or new AI-centric workloads, digitalisation continues apace.

Like it or not, living in a city today is very different than it was 30 years ago. We need the conveniences and efficiency that digital services and systems give us.

Interestingly, these larger data centres may actually help on the sustainability front.

That's because larger data centres offer much better energy efficiency than smaller ones due to economies of scale - the cost per unit of output decreases as the scale of operation increases.

Are smaller data centres doomed

With the massive, new data centres having an edge in efficiency, are smaller data centres doomed?

I personally don't think so. I feel there will always be room for smaller data centres for reasons such as:

• Greater flexibility for smaller users.
• Adaptability to serve niche markets.
• Ease of deploying advanced cooling solutions.

Of course, older and smaller facilities are less likely to be suitable. I wrote a week ago that Singtel is shutting down 5 older data centres in Singapore for the sake of sustainability.

What do you think?

In a nutshell, smaller data centres could present unique opportunities for experimentation, be deployed closer to users, and to meet specialised needs.

Do you think there is room for both hyperscale data centres and smaller facilities?

What do you think?