Company

The green potential of data centers

11,000 data centers worldwide process, store and network huge amounts of data. In addition to performance and security, optimizing energy efficiency is crucial to their profitability and sustainability requirements. Read how semiconductors help make data centers more efficient and greener.

Energy
Data centers
Article

Jul 12, 2025

Our connected world with data at the core

Living in an ever-connected world, we create huge amounts of data every second. We surf through the web, communicate virtually, send photos and upload videos. We end our day watching films and series on streaming services or playing online games. Workwise we’re having numerous online meetings and conferences. And let’s not forget our connected smart homes. Can you even remember the last time you spent an entire day offline? And what about AI?

woman taking selfie with smartphone
woman taking selfie with smartphone
woman taking selfie with smartphone

Fueled by AI and advancing digitalization, data use will continue to increase, and worldwide data volumes will reach approximately 291 zettabytes by 20271. Here are some examples of why:

  • AI algorithms, particularly machine learning and deep learning models, require extensive datasets for training as well as continuous data input for real-time inference.
  • The advancement of autonomous driving technologies will lead to a surge in data produced by connected and self-driving vehicles.
  • As the adoption and use of cryptocurrencies continue to increase, the associated data processing requirements will drive substantial growth in data generation and processing demands.
  • The integration of blockchain technology in gaming, also known as “play-to-earn" or “crypto games", introduces new data processing demands for using cryptographic methods to manage the state of the game, player interactions and the actions taken within the game.
  • Industries across sectors are embracing the digital transformation (“Industry 5.0”), leading to an exponential increase in industrial data generation.

This staggering amount of data showcases the sheer scale and complexity of the digital infrastructure that underpins our modern interconnected world. All that would be impossible without data centers.

Data centers – the backbone of our digital society

Not everyone is aware of the immense importance of data centers. In fact, they are the backbone or even the brains of the internet. All the online services we use every day – whether in our private or work lives – are based on data centers and supercomputers that process, store and connect an incredible amount of data. At the same time, their energy needs are growing rapidly. 

two people standing in front of a server in a data center
two people standing in front of a server in a data center
two people standing in front of a server in a data center

According to the IEA, data centers are responsible for consuming around 2 percent of the world's total electricity, or 460 TWh2, which is equivalent to the energy consumption of around 153 million households. Up to 40 percent3 of the energy is typically used for cooling alone. Additionally, in an average data center about 17 percent of energy is lost during various power conversion steps. There is a strong need for innovative power solutions that reduce waste heat and minimize cooling requirements. This is where power semiconductors come in, especially the latest technologies such as silicon carbide (SiC) and gallium nitride (GaN). 

These components significantly increase energy efficiency and optimize every step of power conversion – from the grid to the processors. This approach helps reduce operating costs while promoting sustainability: By reducing the need for cooling, operators can conserve water resources and significantly cut CO2 emissions.  By combining state-of-the-art semiconductors, data centers can drastically reduce their power consumption. With its highly efficient power semiconductors, Infineon helps operators to almost halve their power delivery network losses from 17 percent down to about 9 percent.

How much energy could be saved globally?

placeholder
placeholder
placeholder

Data centers have become a fundamental necessity in a world where data never sleeps. That’s why it’s even more important to strive for more sustainable data centers. And semiconductors are right at the forefront. These tiny yet mighty components support energy efficiency, ensuring that the digital heartbeat of our interconnected world remains strong and eco-friendly. The future of data centers is not only fast and secure, but also green, thanks to the innovative potential of modern semiconductors.

Discover our product portfolio