World Bank chief says data centers won’t reach emerging markets

World Bank Group President Ajay Banga said on Wednesday that data centers are unlikely to take root in emerging markets, arguing that developing nations cannot afford to divert scarce energy resources to power artificial intelligence infrastructure.

"Emerging markets don't have a lot of those data centers, and it's not coming, trust me," Banga said during a Bloomberg Green panel at Climate Week NYC. "You need computing power. Lots of it. You need electricity. Lots of it. More than what the developed world also has in some cases, let alone these developing countries."theedgemalaysia+1

Energy Demands Collide With Development Needs

Banga's remarks come as global demand for data center capacity surges, driven largely by the AI boom. The International Energy Agency projected in an August report that data center electricity consumption is set to more than double from about 485 TWh in 2025 to roughly 950 TWh by 2030, accounting for around 3% of global electricity demand. That growth is concentrated overwhelmingly in the United States, China, and Europe.iea+2

For many developing economies already struggling to provide reliable electricity to their populations, the prospect of hosting energy-hungry server farms presents an acute tradeoff. Banga pointed to the full range of requirements beyond just power. "You need data, lots of it flowing freely, and you need people who understand how to use this," he said. "In addition to the capital that you will require to put these in. There are very few emerging markets with that."theedgemalaysia

A Widening Digital Divide

The comments underscore a growing concern that the AI infrastructure boom could deepen the gap between wealthy and developing nations. While major tech companies pour tens of billions of dollars into data center construction across North America and Europe, emerging economies risk being left further behind in the race to harness AI.

Climate Week NYC, running September 20–27 in New York, has featured extensive discussion of the environmental toll of data centers. U.S. mayors have pushed for sustainable data center standards, and the Department of Energy has highlighted the challenge of meeting concentrated demand from AI facilities with clean energy sources. Banga's blunt assessment adds a development dimension to that debate, suggesting the AI age's physical infrastructure will remain firmly rooted in the world's richest economies.c40+2