As the digital infrastructure landscape continues to evolve, increasing AI workloads present both challenges and opportunities for data centre investments. The MIPIM 2025 panel discussion, Future-Proofing Data Centre Investments, delved into strategies that ensure the viability, flexibility, and scalability of data centres in this dynamic landscape.

The evolution of AI has necessitated a re-evaluation of data centre design and operations to accommodate the increasing complexity and scale of processing power. Understanding customers' evolving requirements is crucial for future-proofing investments and ensuring that data centre operators can meet the demands of tomorrow's digital economy.

What do you need to know?

The digital infrastructure asset class remains highly attractive to investors due to several factors: 

• Stable cashflows from strong covenants with long lease terms provide stability and predictability, making data centres a compelling investment option. 
• Strong rental growth over the past few years with increased demand for digital services further enhance the appeal of data centre investments.

Traditional availability zones in FLAP-D (Frankfurt, London, Amsterdam, Paris, and Dublin) are facing power and land constraints, which has prompted investors to explore Tier 2 markets. These markets often offer shorter power delivery timelines, with European markets such as Milan, Manchester and Berlin showing significant growth.

Selecting the ideal site for a data centre is a multifaceted process that involves several critical factors: 

• Power availability is paramount, with a preference for renewable energy sources to ensure sustainability and cost-effectiveness. 
• The location within an availability zone and the pricing of the land also play a significant role, as does the robustness of the surrounding fibre and grid infrastructure. 
• Favourable planning and permitting conditions are essential to streamline the development process and mitigate potential delays. 
• Latency is also an important factor, which will be dictated by the use case for the compute.

Addressing power availability issues is critical for the success of data centre investments. Solutions range from behind-the-meter setups, which allow data centres to generate their own power, to exploring nuclear options for a longer-term energy supply. Ensuring a reliable and sustainable power source is essential for maintaining operational efficiency and meeting the growing demands of the digital economy.

Engaging with local communities is also a vital aspect of data centre development. Building strong relationships with regional stakeholders helps ensure that data centre projects align with local needs and expectations. This engagement can also facilitate smoother planning and permitting processes, as well as foster support from the community.

Summary

As technology continues to advance, data centres must remain agile and adaptable. Flexible designs that allow for seamless expansion are crucial for accommodating the growing demands for data processing and storage. The panellists felt that liquid to chip will become the dominant cooling preference in the coming months and years. Scalability lies at the core of data centre design, enabling operators to respond quickly to changes in technology and market conditions.

As we look ahead, the data centre investment landscape will continue to be strongly shaped by market dynamics, technological advancements, and evolving regulatory frameworks. Investors must stay agile and informed to navigate this complex and rapidly changing environment.