Chamber of Commerce:

Demand for data centers is also increasing in Austria

Data centers are where cloud and AI happen.

(Bild: Matthias)

The Information and Consulting Division of the Vienna Chamber of Commerce is drawing attention to the rapidly increasing demand for data centers. Such centers store, process and distribute large amounts of data. 

They are regarded as the digital backbone of numerous sectors - from industry and healthcare to public administration. And the computing power they create "can certainly be seen as a currency", said division chairman Martin Heimhilcher on Thursday.

According to the Chamber of Commerce, the global market for data centers is estimated to be worth around 412 billion euros this year and is growing at an average annual rate of a good eight percent. The market is expected to reach a volume of around 568 billion euros by 2029. The importance of the market is also growing in Europe. Its energy consumption here alone could increase to 98.5 terawatt hours (TWh) by 2030, which corresponds to growth of 28% compared to 2018.

This requires a reliable power supply, a nationwide fiber optic infrastructure and well-trained IT specialists. The latter in particular represents a major challenge. "There is currently a shortage of 6,000 IT specialists in Vienna alone - a significant bottleneck that urgently needs to be addressed in order to keep the business location competitive in the long term," emphasizes Martin Puaschitz, Chairman of the UBIT (Management Consulting, Accounting and Information Technology) specialist group.

Earthquake safety versus lack of space
"The demand for data centers is increasing; also and especially due to the increasing number of AI applications that require enormous computing power," explains Heimhilcher. In fact, artificial intelligence (AI) is one of the most energy-intensive applications: A single AI query can have 10 to 100 times the energy requirement of a conventional data query.

There are currently 21 data centers in Vienna. The city offers a number of locational advantages such as a high level of security of supply with green energy, political stability and earthquake safety. However, the construction of new data centers faces challenges: A lack of space and high real estate prices make it difficult to locate new server farms.

The largest available areas are usually located in outlying business parks, while space for new facilities in the city center is limited.