DeepSeek launch highlights AI power demand uncertainty

Significance

Data centre power requirements are causing grid congestion because of limited local grid infrastructure, forcing new centres to locate to places further from consumers. Secondary markets with secure power supplies look set to attract more data centre investment.

Impacts

• Data centre growth, and localised grid congestion, will add to pressure to invest and develop electrical grid infrastructure.
• Demand for liquid cooling technologies will rise as data centre rack density increases.
• Data centre operators will look to secure firm power supplies, potentially backing new technologies such as small modular reactors.