Our digital economy relies on robust digital infrastructure services to function efficiently. From the data centers that power cloud computing to the energy solutions that keep our always-on world running, these critical services form the backbone of our interconnected society. Yet many organizations struggle to understand the complex ecosystem of infrastructure solutions available to them, often leading to inefficient deployment strategies and suboptimal performance.
This comprehensive guide explains what digital infrastructure services encompass, why they’re increasingly critical in an AI-driven world, and how forward-thinking organizations can leverage them to gain a competitive advantage while meeting sustainability goals.
What Are Digital Infrastructure Services?
Digital infrastructure services refer to the physical and virtual resources that enable data processing, storage, and transmission across digital networks. Unlike traditional IT infrastructure, modern digital infrastructure extends beyond servers and network equipment to include specialized facilities, power systems, and the services required to deploy, manage, and optimize these resources.
The digital infrastructure landscape has evolved dramatically in recent years, driven by exponential growth in computing demands. What once consisted primarily of on-premises data centers has transformed into a diverse ecosystem of colocation facilities, hyperscale data centers, edge computing nodes, and cloud platforms, all requiring specialized infrastructure support.
Core Components of Digital Infrastructure
The foundational elements of digital infrastructure services include:
Data Center Facilities: Purpose-built environments designed to house computing equipment under optimal conditions. These facilities require precise temperature control, redundant power systems, and physical security measures to ensure reliable operations. Modern data center design has become increasingly specialized, with facilities tailored to support specific workloads such as high-performance computing (HPC) or artificial intelligence. These specialized requirements extend beyond the physical building to include interconnection capabilities and power distribution systems.
Power Infrastructure: Reliable and sustainable energy solutions to power computing resources. As data center power demand is projected to increase by 165% by 2030, according to Goldman Sachs Research, power infrastructure has become a critical constraint for digital expansion. Advanced power infrastructure services now include renewable energy integration, battery storage, and dynamic load management capabilities to ensure both reliability and sustainability.
Network Connectivity: High-bandwidth, low-latency connections that link data centers to broader networks and end users. Modern connectivity services extend beyond basic internet access to include specialized private networks, direct cloud connections, and software-defined networking capabilities that enable more flexible and efficient data transmission.
The Growing Importance of Digital Infrastructure Services
Digital infrastructure has transitioned from a supporting IT function to a strategic business imperative. This shift is driven by several factors that have fundamentally changed how organizations leverage computing resources.
Exponential Growth in Computing Demand
The scale of digital infrastructure requirements has expanded dramatically, largely driven by data-intensive applications and artificial intelligence. According to a Department of Energy report released in December 2024, data center loads in the United States doubled from 2017 to 2023 (from 58 TWh to 176 TWh) and could potentially double or triple again by 2028. Such unprecedented growth requires specialized infrastructure solutions that can scale efficiently.
AI workloads in particular have accelerated infrastructure demands. Modern AI servers can consume up to four times the power of traditional compute equipment, creating new challenges for data center cooling and power distribution. Meeting these demands requires specialized digital infrastructure services designed specifically for high-density computing environments.
Power Availability as a Critical Constraint
Power has emerged as the primary bottleneck for digital infrastructure deployment. In many regions, the existing electrical grid cannot keep pace with data center growth. Some utilities now estimate it will take up to five years to provide adequate capacity for new data centers, creating significant delays for organizations attempting to expand their digital capabilities.
Bottlenecks have led to the development of specialized energy services tailored for digital infrastructure. These include on-site generation, energy storage solutions, and dedicated renewable energy facilities designed to supplement grid capacity. These services help bypass traditional utility constraints while supporting sustainability objectives.
Balancing Performance, Reliability, and Sustainability
Today’s organizations face competing priorities when developing digital infrastructure strategies. They must:
- Deliver high-performance computing capabilities to support AI and other intensive workloads
- Ensure 24/7 reliability to support mission-critical applications
- Meet increasingly stringent sustainability requirements
Digital infrastructure service providers offer specialized solutions to address these competing demands. For example, immersion cooling technology can reduce cooling energy requirements by up to 95% while also improving computing performance. Similarly, renewable energy solutions paired with battery storage can provide both clean power and enhanced reliability.
Types of Digital Infrastructure Service Providers
The market for digital infrastructure services has evolved to include several distinct categories of providers, each offering specialized capabilities.
Traditional Data Center Operators
Established data center companies offer physical space, power, cooling, and basic connectivity. These service providers typically focus on providing secure, reliable facilities with the necessary environmental controls and physical security to support computing equipment. While these providers offer a solid foundation, they may lack the specialized capabilities required for next-generation computing workloads.
Energy-First Infrastructure Developers
A newer category of service providers focuses on securing and delivering power in constrained markets. These companies acquire and develop land suitable for data center deployment while simultaneously addressing the critical power needs that traditional utilities struggle to meet. JLL’s market analysis highlights the urgency of this approach, finding that data center power loads have been growing at approximately 21% CAGR in recent years.
These energy-first providers often leverage renewable energy solutions, on-site generation, and advanced energy storage to create dedicated power infrastructure for data centers. The approach is particularly valuable in markets where grid capacity limits traditional expansion opportunities.
Integrated Solution Providers
The most advanced digital infrastructure service providers offer turnkey solutions that address the entire spectrum of needs, from site selection and power procurement to facility design and operational management. These providers can dramatically accelerate deployment timelines while reducing complexity for their clients.
The integrated approach is particularly valuable for hyperscale operators and enterprises developing AI capabilities. According to Network World analysis, U.S. data centers had approximately 25 GW of demand in 2024 and will require over 80 GW by 2030—a scale that requires comprehensive infrastructure solutions rather than piecemeal approaches.
Key Considerations When Evaluating Digital Infrastructure Services
Organizations seeking digital infrastructure services should consider several factors to ensure they select the right partners and solutions.
Current and Future Power Requirements
Power capacity planning has become increasingly complex as computing workloads evolve. Traditional metrics like watts per square foot no longer provide adequate guidance, particularly for AI and HPC deployments. Organizations should carefully evaluate:
- Current power density requirements for their specific workloads
- Projected growth in power needs based on computing roadmaps
- Availability of both standard and high-density power options
- Renewable energy integration capabilities
The most effective digital infrastructure services provide scalable power solutions that can adapt to changing requirements while supporting sustainability objectives.
Speed-to-Market Capabilities
In competitive markets, deployment speed can provide significant advantages. Traditional infrastructure development often takes 36-48 months from site selection to operational capability. Leading service providers can compress this timeline to less than 24 months through:
- Pre-developed sites with necessary entitlements and permits
- Established relationships with utilities and local authorities
- Standardized design and construction methodologies
- Integrated supply chains for critical components
Organizations should evaluate potential partners based on their demonstrated ability to accelerate deployment while maintaining quality and reliability.
Financial Stability and Execution Credibility
Digital infrastructure represents a long-term investment that requires partners capable of meeting commitments over extended periods. Evaluating service providers should include an assessment of:
- Financial backing and stability
- Track record of successful project completion
- In-house capabilities versus outsourced functions
- Industry expertise and leadership experience
The financial backing structure of infrastructure providers can significantly impact project execution and long-term reliability. While many developers rely on external investment partners like Morgan Stanley or JP Morgan—requiring time-consuming approval processes for each project—companies backed by established conglomerates like Hanwha offer distinct advantages. Hanwha’s integrated approach means faster decision-making capabilities and access to capital without the delays inherent in third-party financing arrangements.
Given the critical nature of digital infrastructure, organizations should prioritize partners with demonstrated execution capabilities and the financial resources to support long-term operations. The stability provided by established corporate backing ensures projects can weather market volatility and maintain commitments throughout extended development and operational periods.
The Future of Digital Infrastructure Services
The digital infrastructure landscape continues to evolve rapidly, with several emerging trends that will shape service offerings in the coming years.
Integration of Renewable Energy and Storage
Sustainability has become a core requirement for digital infrastructure, driving innovation in renewable energy integration. According to Microgrid Knowledge, data centers could consume nearly one-fifth of nationwide electricity by 2033, with AI driving approximately 70% of that growth. Meeting demand sustainably will require comprehensive approaches that combine on-site generation, storage, and grid-scale renewable procurement.
Leading service providers are developing energy campuses that pair data centers with dedicated renewable generation and storage facilities. This approach addresses both power availability constraints and sustainability objectives while potentially providing grid stability benefits.
Advanced Cooling Technologies
As computing density increases, traditional cooling approaches become increasingly inadequate. According to a Data Center Frontier article, immersion cooling can reduce cooling electricity by 95% and server power use by 10-20%. This represents a significant opportunity to improve both efficiency and performance.
The next generation of digital infrastructure services will incorporate advanced cooling technologies as standard offerings rather than custom solutions. More efficient use of power resources will support higher-density computing deployments.
Data Centers as Grid Assets
Rather than viewing data centers simply as power consumers, forward-thinking providers are positioning them as potential grid assets. According to an ACEEE policy brief, data centers can reduce energy consumption during grid strain, increase usage during renewable surpluses, and store excess electricity to feed back into the grid.
The approach creates mutual benefits for data center operators and utilities while supporting broader grid stability. Digital infrastructure services that enable this bidirectional relationship will likely gain competitive advantages as power constraints become more prevalent.
Select the Right Digital Infrastructure Partner
The complexity and strategic importance of digital infrastructure necessitate careful consideration when selecting service providers. Organizations should seek partners that offer:
- Comprehensive solutions addressing both space and power needs
- Demonstrated experience with similar deployments
- Financial stability and execution credibility
- Alignment with sustainability objectives
- Flexibility to adapt as requirements evolve
By selecting the right digital infrastructure services partner, organizations can accelerate their digital transformation initiatives while managing risks and optimizing costs.
As computing demands continue to grow exponentially, particularly for AI applications, the importance of specialized digital infrastructure services will only increase. 174 Power Global stands at the forefront of this evolution, offering power-first solutions that enable data center development in constrained markets through innovative approaches to energy procurement and infrastructure development. Contact us today to see how we can help you stay ahead.
