The AI data challenge
Data explosion
AI-driven applications generate vast amounts of data. Generative AI (GenAI), which can create text, images, and video, uses large language models (LLMs) to process massive datasets.
Data generated by applications
Mobile phone
6 GB
per month1
Security camera
200 GB
per month2
Connected car
4 TB
per day3
Plane
40 TB
per hour4
Hadron collider
100 PB
data permanently archived5
Human body
26 ZB
human DNA storage6
Mobile phone
6 GB
per month1
Security camera
200 GB
per month2
Connected car
4 TB
per day3
Plane
40 TB
per hour4
Hadron collider
100 PB
data permanently archived5
Human body
26 ZB
human DNA storage6
From autonomous vehicles and smart security cameras to AI-powered mobile phones and ChatGPT, AI depends on seamlessly processing this mass of data in real time. That requires resilient, high bandwidth, low latency connectivity.
As a result, global network traffic is expected to rise sharply over the next few years, primarily driven by AI-upgraded applications.
Projected global network traffic (2022-30)
Source: Omdia, “Omdia’s new AI network traffic forecast expects surge, pressure on telcos to meet future growth”, Dec 2023
Data centre growth
To meet this rising data tide, businesses will need high-capacity connectivity to data centres to ensure fast, low latency connections. Global spending on data centre systems is forecast to grow by around 24% in 20247, primarily driven by training needs for GenAI.
In the United Kingdom data centre power usage is set to surge six-fold over the next 10 years8.
However, data centre development in London and the South of England faces significant challenges due to power and space constraints, leading to tier 2 and tier 3 markets rapidly expanding.
Incremental data centre MW growth out to 2028 for selected European countries
+900 in UK
Source: Ciena analysis of S&P/ 451 Research DCKB, March 2024
Data centre growth
To meet this rising data tide, businesses will need high-capacity connectivity to data centres to ensure fast, low latency connections. Global spending on data centre systems is forecast to grow by around 24% in 20247, primarily driven by training needs for GenAI.
The United Kingdom Data Center Market size is estimated at 2.19 MW in 2024, and is expected to reach 3.61 MW by 2029, growing at a CAGR of 10.49%. Indeed, data centre power usage is set to surge six-fold over the next 10 years8.
However, data centre development in London and the South of England faces significant challenges due to power and space constraints, leading to tier 2 and tier 3 markets rapidly expanding.
Regional trends
In contrast, regions like Scotland are becoming increasingly attractive thanks to their high renewable energy potential and cooler climate, which reduces data cooling costs. In Scotland, renewable energy output has doubled over the last decade, and more is in the planning pipeline.
Meanwhile, Nordic countries like Sweden and Finland are also attracting data centre investment thanks to their cool climate, abundant renewable energy resources and more cost-effective energy tariffs. This will drive a greater demand for connectivity in northern UK, both to support local data centre needs in Scotland and to backhaul traffic destined for the Nordics.
How will this explosion of data and data centres impact business networks? How will business networks adapt to this changing demand?
1 OFCOM 2022
2 Nest Camera
3 Gartner 2020
4 Boeing 787
5 CERN
6 Microsoft
7 Gartner Market Databook, 2024 Update, July 2024
8 BBC