Data Center Construction Excitement Needs a Dash of Caution

Many in the construction industry foresee the continued expansion of data centers as a key part of their growth projections for 2026 and beyond. However, could hyper-scale data centers be too much of a big thing?

Pete Sacco, founder and CEO of PTS Data Center Solutions, told a recent Data Center World conference in Washington, D.C. that clusters of small data centres requiring only five to 20 MW of power are the future.

Sacco noted many large projects are now being cancelled due to interconnection delays and local pushback. At the same time, he said inference work — answering prompts — as opposed to training, is growing rapidly and will account for 55 per cent of AI computing demand in 2027.