The Data Center's Role in Enabling 5G Technology
Join us for part 3 of C&D's series on 5G technology.
Executive Summary
This white paper presents a comprehensive view of how 5G technology, AI, hyperscale and edge computing, and colocation services are transforming data center infrastructure globally. With connected devices expected to reach 29 billion by 2030 and global mobile data traffic exceeding 300 exabytes per month by 2027, the current generation of data centers must evolve rapidly.
Key recommendations include prioritizing edge deployment, integrating renewable energy and advanced cooling systems, and leveraging AI for autonomous operations. C&D Technologies supports this evolution with energy storage solutions designed for performance, resilience, and sustainability.
1. The Expanding Role of Data Centers in a 5G World
5G technology introduces revolutionary enhancements in speed, latency, and connectivity. With speeds up to 10 times faster than 4G and the ability to support 1 million connected devices per square kilometer, 5G creates an exponential increase in both volume and velocity of data. This digital deluge requires a redefinition of data infrastructure, necessitating not just more data centers—but smarter, more agile ones.
Hyperscale data centers—massive computing campuses operated by cloud giants like AWS, Microsoft, and Google—serve as the central hubs of digital workloads. These hyperscalers are expected to number over 1,200 globally by 2026, a 35% increase from 2023.
A dramatic transformation
To support the explosive growth of AI-driven services and cloud-native platforms, data centers are undergoing a dramatic transformation. A key indicator of this shift is the rapid increase in rack power densities, fueled by the deployment of next-generation GPU clusters and specialized AI accelerators.
While traditional enterprise environments typically operate within the 10–15 kW per rack range, modern AI workloads now demand significantly higher thresholds. Leading-edge systems—such as those based on NVIDIA’s latest Blackwell architecture—are already consuming 60-120 kW per rack, and designs exceeding 600 kW are on the horizon.
Unprecedented demand for capacity, efficiency, sustainability, and resilience
This escalation is placing unprecedented stress on power distribution, thermal management, and facility design, compelling operators to adopt advanced solutions such as direct-to-chip liquid cooling, rear-door heat exchangers, and high-voltage power feeds. As AI models become larger and more complex, data center infrastructure must scale accordingly—not only in raw capacity but also in energy efficiency, sustainability, and resilience.
Edge data centers complement this by providing real-time computing near users. Edge nodes are rapidly expanding into locations previously underserved—retail parks, base stations, smart factories—to meet ultra-low latency requirements. IDC predicts over 30% of enterprise workloads will be processed at the edge by 2028, and colocation is playing a vital role in bridging edge deployments with centralized core infrastructure.
2. Infrastructure Shifts to Support the 5G-AI Convergence
The convergence of AI and 5G has redefined the technical landscape for data centers. Latency must be reduced to sub-millisecond levels, and data throughput must scale exponentially. This has a direct impact on electrical and thermal infrastructure.
Power usage effectiveness (PUE) remains a critical metric. Yet, the influx of AI and ML applications is increasing power demand faster than efficiency improvements alone can offset. According to recent surveys, median rack density in advanced data centers grew from 14.3 kW in 2020 to 29.4 kW by 2024, with cutting-edge deployments surpassing 100 kW.
Cooling becomes a limiting factor under such high loads. Direct-to-chip liquid cooling, immersion cooling, and adaptive airflow management systems are being deployed at scale. Immersion cooling is projected to grow at a 22% CAGR through 2028, cutting cooling overhead by up to 40%. Hot/cold aisle containment, once optional, is now standard in over 85% of Tier III and Tier IV builds.
3. The Synergy Between Hyperscale, Edge, and Colocation Architecture
Modern digital infrastructure is no longer centralized. Hyperscale and edge architectures are co-evolving in a tiered model, with colocation providing the necessary interface between them.
Hyperscale data centers provide the computational horsepower and capacity to manage vast AI models, machine learning training, and cloud services. However, edge computing is required to deliver on the latency promises of 5G. This includes use cases such as autonomous vehicles, remote surgery, and augmented reality, where milliseconds matter.
Colocation providers are evolving to accommodate both high-density hyperscale tenants and edge-focused enterprises. These facilities offer fast connectivity, regulatory compliance, and scalability—all without the CAPEX burden of building private data centers. A 2024 North American study shows that 64% of new enterprise workloads now rely on colocation to support distributed strategies.
5G technology introduces revolutionary enhancements in speed, latency, and connectivity. With speeds up to 10 times faster than 4G and the ability to support 1 million connected devices per square kilometer, 5G creates an exponential increase in both volume and velocity of data. This digital deluge requires a redefinition of data infrastructure, necessitating not just more data centers—but smarter, more agile ones. "
The Data Center's Role in Enabling 5G Technology4. Energy Consumption Challenges in the 5G + AI Era
As 5G and AI accelerate digital transformation, the demand for power has reached unprecedented levels. According to estimates, data centers could consume up to 8% of global electricity by 2030, up from 2% in 2022. This shift is being fueled by increasingly dense workloads, AI inferencing clusters, and edge deployments that multiply the number of physical sites.
AI-specific hardware such as GPUs and TPUs have led to a 67% increase in average rack power draw since 2019. The cooling infrastructure needed to maintain these environments adds further to the energy load. Meanwhile, hyperscale operators are deploying renewable microgrids and integrating battery storage to offset carbon emissions. Europe and North America are leading the way in implementing policies around energy usage disclosures and sustainability reporting.
5. AI as a Catalyst for Autonomous, Resilient Operations
AI is not only driving the load; it’s also enabling smarter management of data centers. Through data center infrastructure management (DCIM) systems infused with AI, operators can implement predictive maintenance, optimize resource allocation, and respond autonomously to security threats.
Predictive analytics reduce equipment failures by 45% by identifying early signs of wear or degradation. AI-powered cooling can dynamically adjust based on workload and ambient conditions, slashing cooling energy use by up to 30%. In cybersecurity, AI reduces mean time to detection and response by 80%, helping protect mission-critical infrastructure in real time.
As AI models grow larger and more complex, infrastructure will continue to evolve toward self-healing, self-regulating systems—especially in edge environments where physical oversight is limited.
6. How C&D Technologies Enables the Future of Data Centers
Utilizing ASHRAE guidelines for server air inlet temperatures, in combination with advanced pure lead battery technology, enables significant energy savings for modern data centers. ASHRAE-recommended inlet temperatures—up to 27°C (80.6°F)—allow data centers to reduce reliance on intensive cooling infrastructure. This strategy lowers overall energy consumption, improves PUE (Power Usage Effectiveness), and supports sustainability goals.
Our pure lead batteries are engineered for high-temperature environments, maintaining stable performance even as ambient temperatures rise. By operating efficiently in these thermal conditions, our batteries eliminate the need for excessive cooling, thereby lowering HVAC-related OPEX and extending the life of data center infrastructure.
This combination of thermal flexibility and battery resilience not only enhances operational reliability and uptime but also reduces the carbon footprint of the facility. When paired with AI-driven thermal controls, operators can implement dynamic cooling strategies without compromising energy storage performance. It's a powerful alignment of sustainability, cost savings, and operational agility—critical for next-generation data center performance.
Our Pure Lead AGM technology not only promotes sustainability but also significantly lowers total cost of ownership (TCO) through extended battery lifespan and reduced maintenance needs. By minimizing the frequency of battery replacements, you can allocate resources more effectively and reduce operational disruptions, ultimately enhancing your bottom line.
Additionally, our True Front Access design enhances safety and simplifies installation and maintenance, allowing your team to operate more efficiently. This means less downtime and a safer working environment, which is crucial in today’s fast-paced data center operations. By integrating our energy storage solutions, you can also align with sustainability goals, appealing to environmentally conscious clients and stakeholders. This not only strengthens your market position but also contributes to a greener future.
7. Conclusion
The 5G era has redefined the data center as a distributed, energy-hungry, intelligent system. High-density racks, AI-driven cooling, and colocation-enabled edge are now strategic imperatives.
C&D Technologies is delivering energy systems that match this complexity—resilient, scalable, and intelligent.
About the author
Magnus Bjelkefelt is the Regional Sales Manager for Europe at C&D Technologies, bringing with him over 20 years of experience in the telecommunications, power electronics, and energy storage industries.
As a Subject Matter Expert in 5G networks, he has developed a deep understanding of the complexities involved in powering and backing up these advanced communication networks.
Articles by Magnus Bjelkefelt