Every time you open an app, stream a show, or ask your smart speaker a question, somewhere in the background a data center is pulling electricity from the grid. And in 2025, these data centers are using a lot more than most people realize.

The International Energy Agency (IEA) estimates that global data centers will consume over 1,000 terawatt-hours of electricity this year. That’s more than the entire annual energy use of Japan, the world’s third-largest economy. This is not just an environmental concern. It’s a structural power crisis.

Big Tech Can’t Power This Alone

Data centers currently account for nearly 2 percent of global electricity demand. That figure is set to rise sharply as AI models, cloud services, and immersive digital platforms continue expanding. The IEA forecasts that data centers will need an additional 60 gigawatts of power by 2030, which is equivalent to building dozens of nuclear plants.

Major tech companies have already started preparing. Google and Microsoft have signed over 20 gigawatts worth of renewable energy contracts in just five years. But demand is still outpacing supply. The electrical grid in many regions cannot absorb more strain.

That creates a clear opportunity for firms that can help bridge the gap. These include solar developers, battery storage companies, and green infrastructure providers.

The Real Winners Are in Solar and Storage

The companies solving the tech sector’s power problem aren’t all household names. But they are quickly becoming high-priority investment targets.

SolarBank (CSE: SUNN) recently launched a 4.99 MW Battery Energy Storage System in Ontario, backed by a $25.8 million deal with the Royal Bank of Canada. Battery storage is crucial to stabilizing energy supply for data centers, which require continuous uptime and high availability.

Meanwhile, UTL Solar (NSE: UTL) is scaling rapidly in India. Following a ₹700 crore IPO, it is ramping up production of solar inverters and rooftop systems, helping meet the demand from India’s growing digital infrastructure. With India expected to become one of the world’s fastest-growing data center markets, UTL’s timing is hard to ignore.

These companies are not just riding a trend. They are providing the systems that will allow data centers to keep scaling without collapsing local grids or relying on fossil fuels.

Operators Are Making the Shift Too

It’s not just equipment suppliers getting more aggressive. Data center operators themselves are shifting their business models toward renewables.

Nippon Telegraph & Telephone Corp. (TSE: 9432) recently announced a $1 billion data center REIT IPO in Singapore. The goal is to convert $3 billion worth of assets to carbon-neutral operations. That type of transition reflects both regulatory pressure and long-term cost optimization.

Companies that generate, store, or manage renewable energy inputs for data infrastructure are now at the core of how digital economies are expanding.