Analysts Warn of Power Hurdles as Global AI Market Set to Hit $73 Trillion by 2033

The dramatic breakthroughs in artificial intelligence technology and market growth are already having a major impact on daily lives, and analysts are forecasting its use is about to explode.

A recent UN Trade and Development (UNCTAD) report projects the global AI market will soar from around $290 billion in 2023 to $73 trillion by 2033.

However, there are a number of major hurdles to be overcome, including financing that growth and then powering it.

Profound Change

According to a white paper by Goldman Sachs Investment Banking titled “Powering the AI Era”, the processes for financing, building, and powering the technology are also undergoing a profound change, with power generation potentially the most critical obstacle for AI.

“In the US, most data centres are powered by natural gas, but issues with permitting, transmission, and supply chains for critical equipment such as turbines have led to development timelines of five to seven years for new natural gas plants,” the white paper noted.

“Other power sources such as nuclear and renewables will play a key role in the future of the industry, as will policymakers’ pledges to improve the power grid and grow generating capacity,” the white paper found.”

Integrated Infrastructure

Goldman Sachs also found that companies involved in AI are increasingly looking for ways to integrate all the infrastructure components.

One preferred option is to finance the data centre as well as the power supply, land, and the technology inside it as a package.

“They are turning to creative financing structures and drawing on multiple pools of capital, including retail investors, insurance companies, and retirement plans such as the $13.5 trillion in 401k assets.”

Local Data Centre Issues

Leading law firm Dentons says Australia is facing the same issues with the creation and maintaining of data centres.

“Australia is experiencing a rapid expansion of data centres, driven by cloud computing, AI, and digital services,” Dentons noted in a recent report.

“This growth is energy intensive—data centres consumed about 5% of Australia’s electricity in 2024, and that share is forecast to reach 8% by 2030, with some analyses warning it could even hit 15% under high-demand scenarios.”

Shifting Landscape

Dentons said that, with electricity demand from data centres forecast to increase significantly by 2030, developers, suppliers, contractors, investors, and operators face a shifting landscape of technical standards, sustainability targets, and connection hurdles.

“In Western Sydney, New South Wales alone, data centre projects under construction could add more than 2 GW of new load – roughly equivalent to two large aluminium smelters.”

This has led to data centre operators now facing stricter regulations and efficiency pressures globally, as power availability (and price) becomes a potential limiting factor for growth.

“Such soaring demand highlights the need for careful planning: ensuring reliable power supply, containing costs, and meeting sustainability targets.”