Is your digital strategy ignoring the “physical body” of AI?

For too long, we’ve spoken about “the cloud” as if it were weightless and immaterial. But as AI scales, its physical footprint—from energy‑hungry data centres to critical raw material demands—is becoming impossible to ignore.

In his recent Q&A with Think Digital Partners, our Research and Impact Fellow Dr Diego Bermudez highlights why AI must now be treated as a physical infrastructure challenge, not just a digital one. He explains that modern AI relies on vast, resource‑intensive systems of steel, silicon, electricity and water—factory‑scale data centres that consume land and generate waste.

From Black‑Box Data Centres to Open, Modular Systems

Diego argues that governments need to move away from opaque, short‑lived “black‑box” architectures toward modular, open‑standard data‑centre designs that extend hardware life, support repair and upgrade, and reduce environmental impact. This requires rethinking digital transformation as an industrial and environmental strategy, not only an innovation agenda.

A New Role for Government: Systemic Architect

The Q&A sets out a clear opportunity for governments to act as Systemic Architects—shifting public procurement away from rapid buy‑and‑replace cycles and towards long‑term value retention, resource optimisation, and lifecycle planning. These steps are essential for achieving national resilience and net‑zero goals.

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Continuing the Conversation

Diego’s discussion with Christine Horton is part of a much-needed national conversation on digital circularity. He will be exploring these themes further at the upcoming GDSA Summit on 25 February 2026, where he will chair the Circular by Design panel focused on how circular economy principles can transform ICT. If you would like to discuss this further, email us.

A huge thank you to Christine Horton, Think Digital Partners, the Government Digital Sustainability Alliance, and all collaborators supporting this work.