AI is Reshaping the Data Center Industry from Ninth Annual State of the Data Center Report

The data center industry is undergoing a transformative shift driven by the rapid advancement and adoption of artificial intelligence (AI). According to the Ninth Annual State of the Data Center Industry Report released by AFCOM and Data Center World AFCOM , AI is pivotal in reshaping how data centers are designed, built, and operated.

The report unveiled for the upcoming Data Center World 2025, highlights key industry trends, security concerns, and workforce demands shaping the future of digital infrastructure.

AI Driving Unprecedented Growth in Data Centers

As organizations increasingly integrate AI into their operations, the demand for robust, scalable, and efficient data centers has surged. The report reveals that 80% of respondents anticipate significant increases in capacity requirements due to AI workloads, with 64% actively deploying AI-capable solutions in their facilities.

One of the most striking findings is the expected increase in data centers over the next three years. On average, operators currently maintain one data center, but this number is projected to rise to six, reflecting a sixfold increase in construction efforts. Additionally, the estimated mean facility size has reached 32 megawatts, underscoring the growing need for high-capacity data processing and storage solutions.

The Rise of Renewable Energy and the Nuclear Data Center

With sustainability becoming a critical priority, data centers are turning to renewable energy sources. The report identifies solar energy as the leading renewable energy choice at 55%, but a notable trend is the emergence of nuclear-powered data centers.

Thirty-three percent of respondents view nuclear energy as a key renewable source, marking a 12% increase from 2024. This shift signals a growing interest in stable, high-output energy solutions that can support the rising power demands of AI-driven infrastructure.

Cybersecurity Threats Continue to Escalate

Ransomware remains the top security threat to data center operations for the ninth consecutive year. The report shows a significant increase in security concerns, with ransomware cited by 60% of respondents, up from 54% in 2024. Other growing threats include:

Human threats (internal or external) at 57%, up from 40% in 2024

Advanced persistent threats targeting IT and corporate data at 48%

Distributed Denial-of-Service (DDoS) attacks at 47%, nearly doubling from 25% in 2024

Data exfiltration or loss at 43%, rising from 28% in 2024

These trends highlight the increasing need for robust cybersecurity measures, particularly as AI applications generate and store vast amounts of sensitive data.

Evolving Physical Security Requirements

Beyond digital security, the report finds that physical security measures are also evolving. Seventy-eight percent of respondents have made changes to their physical security protocols in the past 12-24 months. The most common updates include enhanced surveillance and monitoring systems (48%) and more rigorous vendor and contractor vetting processes (38%). These measures reflect the industry’s proactive approach to safeguarding critical infrastructure.

Demand for Skilled Professionals is Growing

As data centers expand, the need for skilled professionals is at an all-time high. The report identifies the most sought-after roles in the industry, including:

Multi-Skilled Data Center Operators (58%)

Data Center Engineers (50%), up from 45% in 2024

Security Specialists (44%), up from 39% in 2024

The rising demand for data center engineers and security specialists underscores the industry’s need for technical expertise and cybersecurity talent to manage increasingly complex AI-driven infrastructure.

The Future of Data Centers: Innovation and Sustainability

Bill Kleyman ???? , AFCOM Data Center World Program Chair and CEO of Apolo.us, emphasizes that data centers are now at the heart of digital transformation. “The data center has evolved from a supporting player to the cornerstone of digital transformation. It’s the engine behind the most innovative solutions shaping our world today,” he said. He further urges the industry to embrace bold experimentation, push technological boundaries, and focus on sustainability to meet the challenges ahead.

The report surveyed industry professionals to identify trends and implementation strategies in areas such as construction, power, cooling, infrastructure security, cloud migration, AI deployment, and workforce challenges. These insights will help data center operators and IT professionals make informed decisions about future investments and security strategies.

Upcoming Industry Events and Opportunities

For those looking to stay ahead in the evolving data center landscape, Data Center World 2025 will take place from April 14-17 at the Walter E. Washington Convention Center in Washington, D.C. The event will provide a platform for networking, knowledge-sharing, and exploring cutting-edge technologies that will shape the industry’s future.

Additionally, AFCOM continues to offer educational resources and peer-to-peer networking opportunities to support the career growth of IT and data center professionals worldwide.

Conclusion

The Ninth Annual State of the Data Center Industry Report makes it clear: AI is reshaping the data center landscape at an unprecedented pace. As operators scale up their facilities, enhance security measures, and integrate renewable energy solutions, the industry continues to innovate and adapt.

With increasing cybersecurity threats and a rising demand for skilled professionals, the future of data centers will be defined by agility, resilience, and sustainability. The insights from this report will be invaluable for organizations navigating this transformative era in digital infrastructure.