- Nearly 7,000 data centers operate outside the efficient range of 18 to 27 degrees Celsius
- Around 600 facilities face extreme heat exceeding 27°C annually around the world
- Singapore hosts more than 1.4 gigawatts of data centers despite intense heat conditions
Most of the world’s data center capacity is located in climates that impose permanent penalties for cooling and energy efficiency.
According to ASHRAE industry guidance, optimal inlet air temperatures for data centers range from 18°C to 27°C.
However, an analysis mapping global data centers shows that almost 7,000 of the 8,808 operational facilities operate outside this range.
Climate misalignment is now the global norm
Around 600 facilities are located in areas where average annual temperatures exceed 27°C, while many others operate in colder regions below 18°C.
Singapore, for example, has temperatures around 33°C and humidity levels frequently above 80%.
However, the country is home to more than 1.4 gigawatts of operational capacity and authorities have approved several hundred additional megawatts under stricter efficiency controls.
Higher ambient temperatures increase cooling demand and reduce the efficiency of electricity transmission, putting additional pressure on local power grids.
Data centers accounted for around 7% of national electricity consumption in 2020, and projections indicate 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 approximately 415 terawatt-hours of electricity in 2024, or about 1.5% of global demand.
That figure is expected to double by 2030 as higher-density systems proliferate.
Server location decisions are often determined by power availability, electricity price, water access, land costs, and regulatory incentives.
These considerations often trump temperature suitability when operators evaluate new projects.
Air cooling remains the dominant approach globally, accounting for just over half of data center cooling systems deployed.
Liquid cooling is gaining ground, particularly for high-density racks consuming more than 100 kilowatts, but retrofitting existing installations remains capital-intensive.
Many of the most popular data center markets also face limited energy and water resources, limiting the effectiveness of mitigation strategies.
Risk assessments indicate that by 2040, extreme heat could affect approximately two-thirds of the world’s major data centers.
In several countries, including Singapore, Nigeria and the United Arab Emirates, all operational facilities are already located in zones that exceed 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, dramatically increasing power demands and operating costs.
This increase in energy use illustrates a clear economic consequence of the speculated AI bubble, linking inflated expectations to strain on real-world infrastructure.
Through Tom Hardware
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