Matty Bakkeren: 3 Trends That Could Transform Data Centers in 2025
Predicting the future of technology is always a bit of a gamble—especially in the fast-moving world of data centers. After all, we’ve all seen how quickly things can change, and the internet never forgets a missed prediction.
Still, as digital transformation continues to reshape industries worldwide, there’s tremendous value in looking ahead and trying to map out where things might be going. So, in the spirit of taking a calculated risk, I’m sharing my thoughts on three major trends I expect to define the data center space in 2025.
Spoiler alert: Data centers could soon do far more than just power the digital world.
1. Data Centers Will Shift from a Twin-Transition to a Triple Transition
The idea of a "twin transition" for data centers—digital transformation and sustainability—has been a major talking point over the last few years. The growing demand for advanced computing, driven by cloud computing, AI, IoT, and automation, has forced data centers to adopt digital transformation capacity strategies. Simultaneously, the pressure to reduce energy consumption, adopt renewable energy, and implement efficient cooling has driven a sustainability transition.
However, with the rapid rise of artificial intelligence (AI), we’re looking at the emergence of a third transition. AI brings its own set of unique challenges that go beyond digital transformation or sustainability alone. First, AI workloads demand specialized hardware like GPUs and TPUs, driving up power, density, and cooling requirements significantly. Second, because AI’s energy consumption can be enormous, achieving sustainability goals while supporting AI’s growth will be a tough balancing act. Finally, AI will demand new infrastructure, new expertise, and entirely new business models to support its operations. By 2025, this triple transition—digital transformation, sustainability, and AI integration—will be in full swing, reshaping the entire data center landscape.
2. OCP Adoption Will Accelerate, and Its Ecosystem Will Evolve
As the data center industry faces this triple transition, the need for flexible, modular, and energy-efficient solutions has never been clearer. Enter the Open Compute Project Foundation (OCP). Originally developed by Facebook (now Meta) and supported by the likes of Microsoft, Google, and Amazon, OCP has already proven itself as a robust framework for addressing the demands of digital transformation and sustainability.
What’s exciting for 2025 is the increased adoption of OCP, not just by the tech giants, but also by tier-2 industry players. Leading manufacturers like Nvidia, Dell, and Supermicro have already jumped on the OCP bandwagon, recognizing its potential to meet AI-driven demands without compromising energy efficiency. OCP’s power-efficient designs, which provide power management at the rack level, and its readiness for liquid cooling make it a compelling choice for data center operators trying to balance high performance and low environmental impact.
In 2025, OCP will continue to grow into the cornerstone of data center infrastructure, extending beyond the major cloud players to become a common standard for all types of data centers. The modular nature of OCP means that as AI workloads grow, data centers can scale quickly and efficiently, deploying custom solutions with minimal vendor lock-in. With its proven track record, OCP will play a pivotal role in helping data centers meet the demands of the digital, sustainable, and AI-powered future.
3. Data Centers Will Emerge as Energy Providers and Critical Heat Sources
Data centers have long been known for their massive energy consumption, but by 2025, they could also play a pivotal role as active participants in the energy ecosystem. This shift is driven in part by the growing reliance on renewable energy, which can be intermittent. Hyperscalers—those massive cloud operators like Google, Microsoft, and Amazon—are already beginning to explore options to ensure reliable power supplies. Some are even considering restarting nuclear power plants to meet their growing energy demands, recognizing that clean, consistent power is key to their long-term operations.
In addition to these initiatives, we’re seeing an increasing interest in microgrids powered by Small Modular Reactors (SMRs), which could be deployed to directly power data centers. These small, efficient nuclear reactors could provide the stable, low-carbon energy needed to run data centers around the clock, especially in regions where renewable sources are less reliable. With the ability to provide a dedicated, resilient energy source, SMRs could alleviate pressure on the grid while providing the high energy densities required for AI workloads and other high-performance computing needs. As data centers become more energy-critical, this could lead to them not only drawing power but also supplying it back to the grid during peak demand.
But the energy benefits don’t stop at power supply. Data centers also produce substantial amounts of excess heat, which could be repurposed for local needs. In colder climates, this waste heat could help warm nearby homes or even support industrial processes that require high temperatures. By redirecting this heat, data centers will not only reduce reliance on fossil fuels for heating but also become integrated into local energy ecosystems, boosting overall efficiency. Or as one speaker simply put it: “Data centers will give every Kwh a second life.”
As a result, the location of data centers may shift to areas where both power supply and heat demand are high, making them critical players in the future of energy grids. Data centers will evolve from simple digital infrastructure to essential energy assets, playing a key role in urban sustainability.
Looking Ahead: Data Centers as Essential Urban Assets
Now, before anyone gets too excited about the idea of a data center on every block, let’s be honest: nobody really wants a data center in their backyard. They’re noisy, energy-intensive, and often not the most visually appealing structures. But here’s the thing—just like no one wants to throw away their phone or PC because they’ve become essential to our daily lives, we’re starting to realize that data centers are becoming just as indispensable. As our reliance on digital infrastructure grows, it’s time to rethink where data centers are located and how they can better fit into residential and urban landscapes–making them quieter, more visually appealing, and seamlessly aligned with their roles in energy distribution and urban sustainability.
In conclusion, the data center industry is on the verge of a major transformation. The next few years will see data centers evolve from isolated tech hubs into integrated energy and infrastructure players. OCP adoption will have accelerated, making energy-efficient, modular designs the standard. The triple transition of digital, sustainable, and AI-driven infrastructure will drive these changes, and data centers will not just store data, but also play an active role in stabilizing the power grid and supporting urban heat networks. The future of data centers is bright, and their influence will only grow as we move further into the digital age.
Predicting the future of technology is always a bit of a gamble—especially in the fast-moving world of data centers. After all, we’ve all seen how quickly things can change, and the internet never forgets a missed prediction.
Still, as digital transformation continues to reshape industries worldwide, there’s tremendous value in looking ahead and trying to map out where things might be going. So, in the spirit of taking a calculated risk, I’m sharing my thoughts on three major trends I expect to define the data center space in 2025.
Spoiler alert: Data centers could soon do far more than just power the digital world.
1. Data Centers Will Shift from a Twin-Transition to a Triple Transition
The idea of a "twin transition" for data centers—digital transformation and sustainability—has been a major talking point over the last few years. The growing demand for advanced computing, driven by cloud computing, AI, IoT, and automation, has forced data centers to adopt digital transformation capacity strategies. Simultaneously, the pressure to reduce energy consumption, adopt renewable energy, and implement efficient cooling has driven a sustainability transition.
However, with the rapid rise of artificial intelligence (AI), we’re looking at the emergence of a third transition. AI brings its own set of unique challenges that go beyond digital transformation or sustainability alone. First, AI workloads demand specialized hardware like GPUs and TPUs, driving up power, density, and cooling requirements significantly. Second, because AI’s energy consumption can be enormous, achieving sustainability goals while supporting AI’s growth will be a tough balancing act. Finally, AI will demand new infrastructure, new expertise, and entirely new business models to support its operations. By 2025, this triple transition—digital transformation, sustainability, and AI integration—will be in full swing, reshaping the entire data center landscape.
2. OCP Adoption Will Accelerate, and Its Ecosystem Will Evolve
As the data center industry faces this triple transition, the need for flexible, modular, and energy-efficient solutions has never been clearer. Enter the Open Compute Project Foundation (OCP). Originally developed by Facebook (now Meta) and supported by the likes of Microsoft, Google, and Amazon, OCP has already proven itself as a robust framework for addressing the demands of digital transformation and sustainability.
What’s exciting for 2025 is the increased adoption of OCP, not just by the tech giants, but also by tier-2 industry players. Leading manufacturers like Nvidia, Dell, and Supermicro have already jumped on the OCP bandwagon, recognizing its potential to meet AI-driven demands without compromising energy efficiency. OCP’s power-efficient designs, which provide power management at the rack level, and its readiness for liquid cooling make it a compelling choice for data center operators trying to balance high performance and low environmental impact.
In 2025, OCP will continue to grow into the cornerstone of data center infrastructure, extending beyond the major cloud players to become a common standard for all types of data centers. The modular nature of OCP means that as AI workloads grow, data centers can scale quickly and efficiently, deploying custom solutions with minimal vendor lock-in. With its proven track record, OCP will play a pivotal role in helping data centers meet the demands of the digital, sustainable, and AI-powered future.
3. Data Centers Will Emerge as Energy Providers and Critical Heat Sources
Data centers have long been known for their massive energy consumption, but by 2025, they could also play a pivotal role as active participants in the energy ecosystem. This shift is driven in part by the growing reliance on renewable energy, which can be intermittent. Hyperscalers—those massive cloud operators like Google, Microsoft, and Amazon—are already beginning to explore options to ensure reliable power supplies. Some are even considering restarting nuclear power plants to meet their growing energy demands, recognizing that clean, consistent power is key to their long-term operations.
In addition to these initiatives, we’re seeing an increasing interest in microgrids powered by Small Modular Reactors (SMRs), which could be deployed to directly power data centers. These small, efficient nuclear reactors could provide the stable, low-carbon energy needed to run data centers around the clock, especially in regions where renewable sources are less reliable. With the ability to provide a dedicated, resilient energy source, SMRs could alleviate pressure on the grid while providing the high energy densities required for AI workloads and other high-performance computing needs. As data centers become more energy-critical, this could lead to them not only drawing power but also supplying it back to the grid during peak demand.
But the energy benefits don’t stop at power supply. Data centers also produce substantial amounts of excess heat, which could be repurposed for local needs. In colder climates, this waste heat could help warm nearby homes or even support industrial processes that require high temperatures. By redirecting this heat, data centers will not only reduce reliance on fossil fuels for heating but also become integrated into local energy ecosystems, boosting overall efficiency. Or as one speaker simply put it: “Data centers will give every Kwh a second life.”
As a result, the location of data centers may shift to areas where both power supply and heat demand are high, making them critical players in the future of energy grids. Data centers will evolve from simple digital infrastructure to essential energy assets, playing a key role in urban sustainability.
Looking Ahead: Data Centers as Essential Urban Assets
Now, before anyone gets too excited about the idea of a data center on every block, let’s be honest: nobody really wants a data center in their backyard. They’re noisy, energy-intensive, and often not the most visually appealing structures. But here’s the thing—just like no one wants to throw away their phone or PC because they’ve become essential to our daily lives, we’re starting to realize that data centers are becoming just as indispensable. As our reliance on digital infrastructure grows, it’s time to rethink where data centers are located and how they can better fit into residential and urban landscapes–making them quieter, more visually appealing, and seamlessly aligned with their roles in energy distribution and urban sustainability.
In conclusion, the data center industry is on the verge of a major transformation. The next few years will see data centers evolve from isolated tech hubs into integrated energy and infrastructure players. OCP adoption will have accelerated, making energy-efficient, modular designs the standard. The triple transition of digital, sustainable, and AI-driven infrastructure will drive these changes, and data centers will not just store data, but also play an active role in stabilizing the power grid and supporting urban heat networks. The future of data centers is bright, and their influence will only grow as we move further into the digital age.
