Tech adoption driving demand for critical resources | Newsflash (original) (raw)

Accelerating adoption of new technologies by UK businesses could increase demand for energy, computing power, and network capacity by as much as 30% this year, with both cost and sustainability implications for organisations.

► Proportion of companies using new tech such as AI is set to double this year

► Energy consumption and demand for network bandwidth also set to rise

A survey of business leaders, commissioned by the ISP, Beaming and undertaken by Censuswide, claims that the proportion of UK businesses using transformative new technologies such as AI, cloud, and data and analytics will almost double this year, from 22 per cent to 40 per cent.

Tech adoption driving demand for critical resources

Almost a fifth (18 per cent) of companies are introducing technologies to transform their products, services and operations, driving up demand for critical resources. The study suggests that:

Computing power – UK businesses will use 19% more computing capacity in 2024 than in 2023. One in six firms anticipate their demand for computing power will at least double this year.

Energy consumption – UK businesses will use 21% more energy for IT needs this year, with large companies predicting a 98% rise. Just 11% of firms told researchers that reducing environmental impact was a consideration in their IT investment plans.

Internet / network capacity – demand will increase by 30% to handle the extra data and communications traffic associated with digital transformation. Large businesses anticipate a 95 % increase in network traffic, while SMBs project an increase of 75%.

Around one in seven companies progressing digital transformation initiatives could not say how their technology adoption plans would affect their need for computing resources, energy and connectivity.

Sonia Blizzard, managing director of Beaming, said: ‘While many businesses are making significant strides with technology, there’s a pressing need for additional resources to support them to make cost-effective, sustainable and humane choices. The growing demand for energy, computing power and network capacity could place significant strain on existing infrastructure and resources, potentially leading to higher costs, environmental impact, and the risk of overburdening current systems.

‘Digital transformation should align with your broader business strategy and consider the impact for both IT and people. Approaches to new tech, like Generative AI, must reflect company values and consider staff and customer needs. With thoughtful planning and expert support, businesses can harness digital transformation to stay competitive.’