Iomart has highlighted increased power demands as a major concern for data centres.
- AI technology is driving a surge in data centre requirements.
- Accessing sufficient power supply remains a key issue.
- UK investments in data infrastructure total over £25bn.
- Iomart’s financial performance faces challenges amidst acquisition.
In a conversation with UKTN, Lucy Dimes, CEO of Glasgow-based Iomart, articulated the growing concern of increased power demands faced by the data centre industry. The company’s experience highlights how AI technology has accelerated this need, with effects becoming noticeable only in the last year.
Despite the AI boom originating in 2022, Iomart and the industry at large are only recently witnessing its tangible impact. Dimes pointed out that often technologies stay in the realm of speculation before they transform into monetizable opportunities. However, the surge in AI-driven data usage now places significant pressure on existing data infrastructures.
The UK, recognising the economic prospects of AI, has marshalled substantial investments in data support frameworks. Since July, private sector commitments have reached upwards of £25 billion, indicating robust confidence among investors. Yet, as Dimes noted, managing this demand with the required power supply remains a persistent barrier.
She expressed that the challenge is not simply about connecting to the existing electricity network but ensuring that power systems are capable of sustaining the sizeable consumption demands of modern data centres. This situation calls for intensified discussions with energy providers to address these critical needs.
Iomart recently announced its financial results, showing steady revenues yet a stark decline in pre-tax profits by 77% to £1 million. While acknowledging these challenges, Dimes remains optimistic due to the acquisition of Atech, foreseeing improved company performance.
The acquisition, valued at £57 million, saw Iomart expand its capabilities through the addition of Atech, a Microsoft MSP partner. However, the company’s stock opened slightly lower following these announcements, reflecting a cautious market response.
The data centre industry’s future hinges on resolving power supply challenges to support technological advancements.
