Investing.com — U.S. knowledge heart energy capability is ready to almost double by 2027, pushed by the rising demand for high-performance computing (HPC) to assist Generative AI (GenAI), in line with a observe from Morgan Stanley on Monday. 

The funding financial institution’s analysis tasks that U.S. knowledge heart energy will enhance from 40 gigawatts (GW) in 2024 to 79 GW by 2027, a pointy rise fueled by the rising necessities of AI applied sciences.

“We anticipate that knowledge heart development within the US and globally will speed up quickly within the coming years, pushed predominantly by development in knowledge facilities for high-performance compute (HPC) for GenAI,” they wrote.

Morgan Stanley’s estimates are based mostly on a bottom-up mannequin that calculates energy demand utilizing projected volumes of GPUs and customized silicon. 

Globally, the financial institution predicts that energy utilization for GenAI will surge from 68 terawatt-hours (TWh) in 2024 to 378 TWh by 2027. This enhance will considerably impression complete world knowledge heart energy utilization, which is anticipated to rise from 443 TWh in 2024 to 877 TWh by 2027.

They add that the expansion of the info heart market can be mirrored within the asset-backed securities (ABS) market. 

Morgan Stanley explains that knowledge heart ABS issuance is on observe to hit a document $8 billion in 2024, bringing the overall excellent to $25 billion—up 37% year-over-year. By 2027, they state that the ABS market might attain $49 billion if the present pattern holds, pushed by extra operators accessing this funding supply and a rising investor base.

Morgan Stanley anticipates that a lot of this knowledge heart enlargement will contain new builds, which might value between $30-$34 million per megawatt (MW) for full setups, or $8-$12 million per MW excluding GPUs and servers. 

Nonetheless, they observe that the time required to convey new knowledge facilities on-line is lengthening, significantly in areas like California, the place tasks now take as much as 125 months. This delay is seen as underscoring the significance of retrofitting current knowledge facilities, reminiscent of these used for bitcoin mining, to satisfy the rapid demand for AI and HPC knowledge processing.