Technology

No wonder there's a bubble - study claims nearly all of the world’s data centers are built in the wrong climate

2025-12-21 23:30
311 views
No wonder there's a bubble - study claims nearly all of the world’s data centers are built in the wrong climate

Most global data centers are built in unsuitable climates, straining cooling, energy, and infrastructure as AI and cloud demand rise.

  1. Pro
No wonder there's a bubble - study claims nearly all of the world’s data centers are built in the wrong climate News By Efosa Udinmwen published 21 December 2025

Many data centers operate outside recommended temperature ranges

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

A data center (Image credit: Arm) Share Share by:
  • Copy link
  • Facebook
  • X
  • Whatsapp
  • Reddit
  • Pinterest
  • Flipboard
  • Threads
Share this article 0 Join the conversation Follow us Add us as a preferred source on Google
  • Nearly 7,000 data centers operate outside the efficient 18 to 27 Celsius range
  • About 600 facilities face extreme heat exceeding 27°C annually worldwide
  • Singapore hosts over 1.4 gigawatts of data centers despite intense heat conditions

The majority of the world’s data center capacity is located in climates that impose permanent cooling and energy efficiency penalties.

According to industry guidance from ASHRAE, the optimal inlet air temperatures for data centers range from 18°C to 27°C.

Yet an analysis mapping global data centers shows that nearly 7,000 of the 8,808 operational facilities operate outside this range.

You may like
  • data AI demand is leading to major data center expansions - but do they have the power to fully operate?
  • Power cables stretching out in front of the horizon Data centers are throttling home building as infrastructure struggles to keep up with AI demands
  • data New data centers will need almost triple the current energy demand by 2035

Climate misalignment is now the global norm

About 600 facilities sit in areas where average annual temperatures exceed 27°C, while many others operate in cooler regions below 18°C.

Singapore, for example, has temperatures hovering around 33°C, with humidity levels frequently above 80%.

Yet the country hosts more than 1.4 gigawatts of operational capacity, and authorities have approved several hundred additional megawatts under tighter efficiency controls.

Higher ambient temperatures increase cooling demand and reduce electricity transmission efficiency, placing additional strain on local power grids.

Are you a pro? Subscribe to our newsletterContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Data centers accounted for about 7% of national electricity consumption in 2020, with projections indicating a sharp increase if capacity expansion continues at the current pace.

Demand for cloud hosting has also accelerated construction in regions already experiencing sustained heat.

According to international energy estimates, data centers consumed roughly 415 terawatt-hours of electricity in 2024, or about 1.5% of global demand.

You may like
  • data AI demand is leading to major data center expansions - but do they have the power to fully operate?
  • Power cables stretching out in front of the horizon Data centers are throttling home building as infrastructure struggles to keep up with AI demands
  • data New data centers will need almost triple the current energy demand by 2035

That figure is expected to more than double by 2030 as higher-density systems proliferate.

Location decisions for servers are typically driven by power availability, electricity pricing, water access, land costs, and regulatory incentives.

These considerations often outweigh temperature suitability when operators evaluate new projects.

Air cooling remains the dominant approach globally, accounting for just over half of deployed data center cooling systems.

Liquid-based cooling is gaining traction, particularly for high-density racks drawing well above 100 kilowatts, but retrofitting existing facilities remains capital-intensive.

Many of the hottest data center markets also face constrained power and water resources, which limits the effectiveness of mitigation strategies.

Risk assessments indicate that by 2040, extreme heat could affect roughly two-thirds of major data center hubs worldwide.

In several countries, including Singapore, Nigeria, and the United Arab Emirates, every operational facility is already located in zones exceeding the 27°C threshold.

Taken together, the data suggest that current expansion patterns prioritize short-term demand and regulatory compliance over long-term environmental efficiency.

There are reports that AI is in bubble territory, with prominent figures such as Michael Burry and Pat Gelsinger warning of overvaluation and speculative hype.

The rapid expansion of AI workloads is driving unprecedented growth in data centers, which sharply increases power demands and operational costs.

This surge in energy use illustrates one clear economic consequence of the speculated AI bubble, linking inflated expectations to real-world infrastructure strain.

Via Tom's Hardware

Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!

And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.

Efosa UdinmwenEfosa UdinmwenFreelance Journalist

Efosa has been writing about technology for over 7 years, initially driven by curiosity but now fueled by a strong passion for the field. He holds both a Master's and a PhD in sciences, which provided him with a solid foundation in analytical thinking.

Show More Comments

You must confirm your public display name before commenting

Please logout and then login again, you will then be prompted to enter your display name.

Logout Read more data AI demand is leading to major data center expansions - but do they have the power to fully operate?    Power cables stretching out in front of the horizon Data centers are throttling home building as infrastructure struggles to keep up with AI demands    data New data centers will need almost triple the current energy demand by 2035    Green hosting How data centers can balance growth with environmental responsibility    Evolution of power consumption & dissipation per rack (2000-2030) This graph alone shows how global AI power consumption is getting out of hand very quickly - and it's not just about hyperscalers or OpenAI    data China wants to sink data centers underwater - could this be the next frontier in computing?    Latest in Pro A dark figure in a hoodie representing a hacker. WhatsApp user warning - hackers are hijacking accounts without any need to crack the authentication, so be on your guard    Quilter AI dual-PCB system AI designed this Linux computer with 843 parts and dual-PCBs in just a week - and it even booted the first time    Analog electrometer is measuring electricity consumption "Tech companies have paid lip service" - US government is asking AI giants why data centers are leading to rising bills    Squarespace paylink information on a tablet in a coffee shop No storefront needed — get paid via DMs and QR codes with Squarespace’s new tool    Security padlock and circuit board to protect data React2Shell exploitation continues to escalate, posing 'significant risk'    cisco logo Cisco email security products actively targeted in zero-day campaign    Latest in News Samsung Galaxy S25 Plus home screen The Galaxy S26 series might be unveiled in February, and on sale in March    A foldable iPhone concept against a multi-colored background. Apple still working on a crease-free iPhone Fold, per a new leak    A data center No wonder there's a bubble - study claims nearly all of the world’s data centers are built in the wrong climate    Quordle on a smartphone held in a hand Quordle hints and answers for Monday, December 22 (game #1428)    NYT Strands homescreen on a mobile phone screen, on a light blue background NYT Strands hints and answers for Monday, December 22 (game #659)    NYT Connections homescreen on a phone, on a purple background NYT Connections hints and answers for Monday, December 22 (game #925)    LATEST ARTICLES