AI growth drives data center expansion and resource competition

The rapid expansion of Artificial Intelligence is driving significant growth in the data center industry. Vertiv, a global leader in the sector, has reported annual growth of approximately 30% over the last five years. To meet rising demand, the company is standardizing data processing units and utilizing pre-assembled data centers that can be shipped to clients in Europe, the Middle East, and Japan.

As data centers scale to capacities of 200 MW, water-cooling technology has become essential. Experts note that over 90% of the water used in these processes can be reused, and there is potential for integration with local thermal power plants to utilize waste heat. Currently, at least 50% of Vertiv’s production is dedicated to AI data processing.

Simultaneously, the European automotive industry faces supply chain challenges due to competition for critical materials. A study by EY for the European Automobile Manufacturers' Association highlights that carmakers are competing with data centers, AI, defense, and clean energy sectors for semiconductors and gallium. While automakers represent only 17% of semiconductor demand and 3% of gallium demand, the scarcity of these materials is driving up costs; for instance, the price of gallium has increased more than elevenfold since 2016.