Global AI boom shifts focus to smarter, greener data centre development

The global surge in artificial intelligence and cloud computing is driving a major transformation in data-centre development, with governments and technology companies increasingly focusing on energy efficiency, sustainable infrastructure and economic value alongside the rapid expansion of computing capacity.

As demand for AI infrastructure accelerates, the international data-centre industry is moving beyond a race to build more facilities towards a broader emphasis on how efficiently they operate, where they are located and how effectively they support digital innovation and economic growth.

Bilawal supports KP emergency, holds PTI leadership responsible for crisis

According to UN Trade and Development (UNCTAD), announced investment in data centres exceeded $270 billion in 2025, accounting for more than one-fifth of global greenfield project values as demand for AI infrastructure, cloud services and digital networks continued to expand.

The investment surge reflects the growing importance of data centres as critical infrastructure for the digital economy, supporting AI applications, cloud computing, digital public services and increasingly sophisticated industrial technologies.

However, this expansion is also placing greater pressure on electricity systems and other resources. The International Energy Agency (IEA) projects that global data-centre electricity consumption will more than double to approximately 945 terawatt-hours by 2030, with AI emerging as the principal driver of that increase.

PMD forecasts rain, thunderstorms in upper parts of country

The projections have brought energy availability, renewable electricity integration, efficient cooling systems, water consumption and computing-resource utilisation into sharper focus as countries plan their next generation of digital infrastructure.

China is among the countries placing greater emphasis on the sustainability and operational efficiency of computing facilities. Last month, five Chinese government bodies launched the 2026 selection programme for National Green Computing Facilities, assessing data centres on energy and carbon efficiency, water consumption, renewable electricity use and utilisation of computing resources.

Jaecoo Launches #MyJaecooJourney Campaign, Offering 100 Customers Free Service for a Year

Industry experts say countries seeking to benefit from the global AI investment boom need to focus not only on attracting capital and constructing data centres but also on ensuring reliable electricity, high-speed connectivity, technical capabilities and long-term economic benefits.

Hassan Abbas, CEO of Sky47, a Pakistani data-centre and sovereign-cloud operator, told Wealth Pakistan that Pakistan is entering an important phase of digital infrastructure development, but rapid expansion also carries the risk of uncoordinated development and data-centre sprawl.

He said data centres should be treated as critical national infrastructure rather than isolated technology or real-estate projects.

UK faces rising threat from far-right terrorism, warns MI5 chief

Planning should consider power availability, connectivity, land, water, renewable energy, cybersecurity, disaster recovery, data sovereignty and future AI workloads together, he added.

Abbas said the purpose of coordination should not be to restrict private investment but to ensure that facilities are developed where they are strategically required and align with appropriate technical and sustainability standards.

He warned that duplicated or poorly planned facilities could lead to inefficient utilisation of scarce electricity, land and connectivity resources while increasing the overall cost of digital infrastructure.Abbas proposed establishing a Pakistan Data Centre Association bringing together operators, cloud service providers and other stakeholders to provide a structured platform for capacity planning, industry standards, sustainability benchmarks, knowledge-sharing and engagement with regulators.

He said such coordination would help Pakistan develop a more integrated digital infrastructure ecosystem while allowing individual operators to compete and innovate.

Abbas also stressed that data-centre investment should be evaluated by the economic activity it enables rather than simply by the number of facilities constructed or the amount of capital invested.

The wider benefits, he said, include local employment, technical skills, domestic cloud adoption, cybersecurity capabilities, AI infrastructure, software development and opportunities for Pakistani businesses to develop and scale digital products.

Pakistan already has a Cloud First Policy aimed at increasing public-sector adoption of cloud services. Abbas said the priority should now be consistent implementation and migration of government workloads to avoid further fragmentation of public-sector digital infrastructure.

For the longer term, he emphasised the importance of developing a national digital infrastructure ecosystem rather than a collection of independent facilities.

“The principle should be simple: competition between operators, but coordination at the ecosystem level,” Abbas said.

Muhammad Arif Rabbany from Gilgit-Baltistan IT Association told Wealth Pakistan that countries competing for data-centre investment are increasingly being assessed on reliable and competitively priced electricity, high-speed connectivity, international bandwidth, cybersecurity standards and regulatory certainty.

He said Pakistan needs to develop local technical capabilities alongside physical infrastructure so that investment generates opportunities for domestic engineers, technicians and businesses working in cooling, networking, power management, cybersecurity and cloud services.

Rabbany said partnerships with international technology companies, including Chinese firms already active in Pakistan’s telecommunications and digital sectors, should increasingly include skills development, local engineering and technology transfer rather than remain focused primarily on imported equipment.

He said emerging economies should also assess whether data-centre investment supported local cloud services, AI companies and technology suppliers while remaining compatible with available electricity and infrastructure resources.

NIPCO House, 4 – Shaharah e Fatima Jinnah,

Tel: +92 42 36367580    |     Fax : +92 42 36367005