2026 Data Center Trends: AI, Cooling & Power Insights

The State of the Data Center in 2025

Bill Kleyman (CEO and Co-Founder, Apollo.us) chairs this session from our 2025 show, unpacking the current state of the data center landscape. In it, he talks through key data center trends from 2025 and industry predictions for 2026. The article below was created from a transcription of this session. To watch the full session, you can download on-demand access here.

Key Takeaways from the AFCOM State of the Data Center Report Presentation

Data Center Growth and Evolution: The industry has seen unprecedented growth in the past 24 months, with hyperscale facilities and modular builds leading the way.
AI's Impact on Data Centers: AI workloads are expected to grow from 15% to 40% of data center workloads by 2030, driving the need for higher rack densities and advanced cooling solutions.
Power and Renewable Energy: Access to power remains the top constraint, with a growing focus on renewable energy and off-grid solutions like nuclear and natural gas.
Security Challenges: Both physical and cybersecurity threats are increasing, with ransomware and human threats topping the list.
Liquid Cooling Adoption: Liquid cooling is gaining traction, with 19% of respondents already using it and more planning to adopt it in the next 12-24 months.
Cloud Repatriation: 80% of respondents report workloads moving from the cloud back to on-premises facilities, driven by cost and operational considerations.
Workforce Shortages: Talent shortages remain a significant challenge, with initiatives needed to attract and train the next generation of data center professionals.

Watch the full session on demand.

The AFCOM State of the Data Center Report: Insights and Trends for 2026

The Rapid Evolution of Data Centers

The data center industry is experiencing a period of unprecedented growth and transformation. Over the past two decades, the pace of change has accelerated dramatically, with the last 24 months eclipsing the progress of the previous 20 years. Hyperscale facilities, modular builds, and secondary markets are driving this expansion, with over 10,000 facilities worldwide and counting.

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AI Workloads: A Game-Changer for Data Centers

Artificial intelligence is reshaping the data center landscape. Currently, AI accounts for 15% of workloads, but this figure is projected to rise to 40% by 2030. This shift demands higher rack densities, with only 20% of respondents currently prepared to support the 50-70 kW per rack required for AI workloads.

Preparing for the AI Era

Rack Density: The average rack density has grown from 6.1 kW nine years ago to 16 kW today, but AI demands densities of 30-40 kW or more.
Cooling Solutions: Advanced cooling methods, including liquid cooling and rear-door heat exchangers, are essential to support these workloads.

Power and Renewable Energy: The Industry's Biggest Constraint

Access to power remains the top challenge for data centers, with demand expected to reach 50 GW in the US alone by 2030. Renewable energy adoption is on the rise, with 27% of respondents already using it and 62% exploring off-grid solutions like nuclear and natural gas.

Key Insights on Power and Energy

Jevons Paradox: Efficiency gains are being outpaced by consumption due to AI and other resource-intensive technologies.
Nuclear Energy: Adoption has grown from 11% three years ago to 33% today, with small modular reactors (SMRs) set to play a significant role.

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Security: Addressing Physical and Cyber Threats

Security remains a critical concern for data centers. Ransomware continues to top the list of threats, but human threats—both accidental and malicious—are now the second-highest concern.

Strategies for Enhanced Security

Physical Security: Incorporate AI-driven visual tracking, drones, and biometric solutions to safeguard facilities.
Cybersecurity: Ensure robust backup systems and management protocols to prevent data loss from ransomware attacks.

Liquid Cooling: The Future of Data Center Cooling

As rack densities increase, traditional airflow cooling is reaching its limits. Liquid cooling is emerging as a viable solution, with 19% of respondents already using it and many more planning to adopt it within the next two years.

Types of Liquid Cooling

Rear-Door Heat Exchangers: Ideal for traditional colocation facilities, allowing for higher densities without major infrastructure changes.
Direct-to-Chip and Immersion Cooling: Suitable for high-performance computing and AI workloads.

View our event agenda to explore the latest advancements in cooling technology.

Cloud Repatriation: A Growing Trend

The trend of moving workloads from the cloud back to on-premises facilities is gaining momentum. 80% of respondents report seeing this shift, driven by cost savings and operational efficiencies.

Why Workloads Are Moving Back

Cost Optimization: Financial operations (FinOps) teams are analyzing cloud costs and identifying opportunities for repatriation.
Hybrid Architectures: Organizations are adopting hybrid models to balance cloud and on-premises workloads.

Workforce Challenges: Bridging the Talent Gap

The data center industry faces a significant talent shortage, with rising operational costs and workforce constraints compounding the issue. Initiatives like the Northern Virginia College Fund aim to attract and train the next generation of professionals.

Addressing the Talent Shortage

Military Recruitment: Veterans bring valuable skills and discipline to the industry.
AI and Automation: Leveraging technology to supplement a smaller workforce.

View our upcoming agenda to explore workforce development strategies.

Conclusion: A Generational Investment Opportunity

The data center industry is at a pivotal moment, with $1.3 trillion in projected growth and transformative technologies like AI and renewable energy driving change. As Bill Klayman aptly stated, "This is a generational investment opportunity."

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