Data centres are exploding in demand. Your hardware costs are next
Artificial intelligence is developing incredibly quickly, and to keep up, the world is building more and more data centres. These facilities are essential for running online services and AI systems, and their rapid growth is now pushing up the cost of laptops, PCs and the components inside them. Below, we explain what is happening in simple terms and what it means for your business.
What is a data centre?
A data centre is a large building filled with powerful computers that store data and run the online services we all rely on. This includes everything from cloud storage to streaming platforms, banking systems and AI tools.
Modern data centres are being upgraded to handle AI, which requires far more power and more advanced computer hardware than traditional systems.
For example, the computers inside these centres now need much more electricity per rack of machines, rising from typical levels to around 40 to 130 kilowatts, and future systems could use up to 250 kilowatts per rack. This is a huge jump in energy use and part of the reason so many new data centres are being built worldwide. An estimated 10 gigawatts of new capacity is set to begin construction in 2025, yet demand is already outpacing supply.
Why are data centres in such high demand?
The short answer is AI.
AI systems need enormous amounts of information and extremely fast computer chips to work well. This means data centres require:
- Special graphics processors (GPUs)
- Large amounts of advanced memory
- Very fast storage
- Heavy cooling systems to prevent overheating
As a result:
- Spending on data‑centre hardware rose by 44 per cent in the second quarter of 2025.
- Big tech companies like Google and Amazon are securing long‑term contracts to guarantee access to the chips and memory they need, which puts pressure on everyone else.
- Some AI projects, such as OpenAI’s Stargate initiative, are estimated to use up to 40 per cent of the world’s DRAM memory supply, leaving much less available for PCs and laptops. (DRAM is the main type of memory used in everyday computers.)
Because so much hardware is being redirected into AI data centres, the rest of the tech market is feeling the squeeze.
How this pushes up laptop and PC prices
A laptop or desktop PC relies on two major components:
- RAM (short‑term memory that keeps programs running quickly)
- Storage (long‑term memory like SSD drives where your files are saved)
AI data centres use huge quantities of both, especially the more advanced versions. Memory manufacturers cannot instantly increase production, so they prioritise the products that earn them the most money, which are the ones used in AI servers rather than home or office computers.
For businesses this often means they’re faced by price rises when acquiring new kit be that tablets, laptops or desktop PCs. Without a network of supplier relationships to call upon you can find yourself paying more than you need to in order to upgrade your tech. This is where Shoothill’s Managed IT Services come in, our team have the understanding of what you need but also that supplier network to get it for you. So if you’re upgrading your business’s technology – speak with Shoothill today.