51. Powering data centers in emerging markets
- Author:
- Phillip Cornell
- Publication Date:
- 05-2026
- Content Type:
- Special Report
- Institution:
- Atlantic Council
- Abstract:
- The rise of artificial intelligence and global demand for cloud computing is rapidly redrawing the geography of digital infrastructure. The International Energy Agency projects that global data center electricity consumption will more than double by 2030 to 945 terawatt hours, with AI-optimized servers driving the bulk of that growth. As mature digital hubs in the United States, Europe, and East Asia run up against the limits of grid capacity, permitting cycles, and land availability, investment is shifting toward emerging markets. Large parts of Southeast Asia, the Middle East, Latin America, Africa, and the Black Sea region feature available land, high renewables potential, stranded energy, and accelerating digital demand. This report examines the conditions under which emerging economies can convert that interest into durable, smart, digital infrastructure. It argues that emerging markets are not merely overflow capacity for saturated hubs but increasingly demand centers in their own right; India for example hosts 20 percent of the world’s data yet accounts for less than 6 percent of global capacity. The same markets, however, present structural risks: limited grid redundancy, volatile electricity pricing, uneven regulation, equipment bottlenecks, and shallow workforce pipelines. Drawing on case studies from Malaysia’s Johor corridor, South Africa, Brazil, Turkey, and India, the report shows how hybrid energy strategies, coordinated permitting, and workforce investment can convert latent advantages into bankable infrastructure.
- Topic:
- Emerging Markets, Infrastructure, Artificial Intelligence, Energy, and Data Centers
- Political Geography:
- Africa, South Asia, Turkey, Latin America, and Indo-Pacific