Data centre demand set to outpace supply as constraints persist

Demand for data centres is overwhelming available supply and could remain ahead of capacity through the end of this decade and beyond, according to Brookfield Asset Management CEO Connor Teskey. Speaking at the Bloomberg New Economy Forum, Teskey dismissed concerns that more efficient AI models would weaken demand for computing infrastructure.

NTT Data CEO Abhijit Dubey said electricity grid capacity, energy storage and conversion, and shortages of skilled workers are the biggest barriers to expansion globally and in India. Electricians, technicians and specialists in design and construction are particularly sought after. Demand and investment capital remain available, he said, making infrastructure and workforce constraints the central challenges.

Infosys CEO Salil Parekh highlighted risks from expensive semiconductor chips and intense competition, saying it remains unclear how long newly built capacity will stay useful. He also warned of potential social backlash against large-scale construction, particularly in Western markets. Meanwhile, Infosys’ AI services are growing at a double-digit rate sequentially. Parekh said they could account for 20-30 per cent of its work within a few quarters and almost half in two or three years.