Data centers are essential hubs for company storage and client information, and they are evolving to meet the demand for more capacity, power and energy sustainability.
Advancements in technology and sustainability goals are shaping the future of data center infrastructures. Here are five key trends taking center stage in 2026: The rise in AI and energy demand, hyperscale data centers, sustainability goals, advancements in liquid cooling and edge computing.
AI and energy demand
The rapid expansion of AI tools, such as ChatGPT, and the continued popularity of cryptocurrencies are driving significant increases in data center energy consumption. The storage and processing requirements for digital currencies and AI-powered applications demand more space and computational power. Storage and AI workloads are also in demand, quickly pressing servers to their limits. AI, while still evolving, is expected to expand further in the coming years.
AI tools are widely used to monitor energy, resources and operational use within facilities. Since the AI boom in 2025, most companies have adopted AI tools to monitor real-time statistics, such as energy consumption, enabling them to actively reduce carbon footprints. These tools also reduce the need for manual intervention, allowing data center operators to focus on strategic initiatives like sustainability and equipment management.
An increased need for AI workloads is directly linked to rising energy consumption. Berkeley Lab’s “2024 United States Data Center Energy Usage Report” projects that by 2028, data centers will consume between 6.7% and 12% of total U.S. electricity, partly due to advancements in AI. The use of alternative energy sources is critical to prevent straining the electrical grid.
Hyperscale data centers
Hyperscale data centers are becoming increasingly popular due to the ever-rising demand for storage. They are the largest and most efficient data storage facilities used by tech-centric companies, such as AWS and Google, that house over 5,000 servers. They have more physical space than traditional data centers and use specialized high-density server racks to maximize server capacity. A hyperscale data center can occupy hundreds of acres of land, while a standard — 40-plus megawatt — data center occupies about 10 acres.
Tech giants Oracle, Meta, Alphabet, Microsoft and Amazon are projected to invest about $600 billion in hyperscale facilities in 2026, 38% more than in 2025, according to S&P Global. These companies will invest in all aspects of their hyperscale data centers, including facility planning and construction, hardware and software upgrades, advancements in AI models and LLMs, and power options.
The Stargate data center project is underway in Abilene, Texas. This project aims to expand the US’ existing AI infrastructure by establishing a campus of hyperscale data centers. SoftBank, OpenAI, Oracle and MGX are investing $500 billion into this project over the next four years.
Sustainability goals
The global push for sustainability continues to shape the data center industry. The United Nations’ (U.N.) net-zero commitment plan, which aims to eliminate greenhouse gas emissions by 2050, remains a driving force behind the adoption of renewable energy sources, such as solar and wind power. This initiative is critical to preventing a global temperature increase of more than 1.5 degrees Celsius.
The Global Cooling Watch 2025 Report, announced at the 2025 U.N. Climate Change Conference, aims to reduce emissions by 64% by 2050. Strategies to achieve this include improving cooling system efficiency, using natural refrigerants such as water and air, and constructing data centers in colder climates to reduce cooling equipment requirements.
The shift from a linear economy to a circular economy is accelerating. Companies are increasingly recycling, reusing and refurbishing older technology rather than discarding it. Nonrenewable resources like gold, silver and copper are being repurposed into new technologies, extending their lifespan and reducing waste.
Liquid cooling
Advancements in AI chip technology have driven a manufacturing boom among AI chip companies. More advanced chips are usually released yearly, and each one can handle more than the last. Servers that use AI chips are more likely to overheat because they require more computational power to handle higher workloads.
Companies are investing in advanced hardware for their data centers, which will only increase temperatures as more servers take on AI workloads. Cooling technologies are evolving to reduce energy use through more efficient methods, such as direct-to-chip and immersion cooling.
Direct-to-chip liquid cooling targets heat production at the source: the AI chips within the server. This cooling method uses liquids, such as water, dielectric fluids or propylene glycol-based fluids, that flow through a plate on top of the hardware chip. The heat from the AI chip quickly dissipates when in direct contact with a cooled surface.
The immersion cooling method takes a larger-scale approach, using a dielectric liquid to surround entire servers or racks. With proper handling, hardware is placed in a sealed tank filled with circulating dielectric liquid, where heat is absorbed and transferred to a connecting cooling system.
Companies are adopting DCIM software to monitor cooling data. AI-enabled smart cooling is also popular among data center infrastructure, as it can enhance energy efficiency up to 40% by predicting and optimizing cooling systems in real time.
Edge computing
Edge computing continues to gain traction due to faster data response times and lower latency than traditional cloud computing. Rising cloud subscription costs have further incentivized companies to adopt edge computing, which processes data in real time without relying on distant cloud servers.
Since data is stored closer to its source, it has less distance to travel to reach company servers than if stored in a data center hundreds of miles away. With shorter travel distances to the network, edge computing uses less energy than a permanent data center to transfer data and maintain the environment.
The growth of AI and IoT is driving the expansion of edge computing. According to MarketsandMarkets, the global edge computing market will reach $249 billion by 2030, up from $168 billion in 2025, reflecting its increasing importance in the data center landscape.
Kelly Richardson is the site editor for Informa TechTarget’s Data Center site.
