What's Happening?
At the Connected Britain 2025 conference, Rob Atkinson from EY highlighted the challenges and opportunities facing the telecoms sector, particularly in the context of AI and data centres. Atkinson noted
that while the telecom industry is exploring transformation from 'telco to techco,' many companies are not yet fully reimagining their business models. AI, especially agentic AI, is seen as a key driver of this transformation, but a significant disconnect exists between the potential of AI and the limitations of legacy IT systems. Atkinson also addressed the recent surge in data centre investments, pointing out the practical challenges such as planning permissions and sustainable energy sourcing that could hinder these projects.
Why It's Important?
The insights shared by Atkinson underscore the critical role of AI and data centres in the future of the telecom industry. The successful integration of AI could revolutionize customer experiences and operational efficiencies, but the current high failure rate of AI pilots indicates a need for more strategic adoption. Additionally, the expansion of data centres is essential for supporting the growing demand for digital services, yet the environmental and logistical challenges must be addressed to ensure these projects are viable. The telecom sector's ability to navigate these issues will significantly impact its competitiveness and sustainability in the digital age.
Beyond the Headlines
The discussion at Connected Britain highlights broader implications for the telecom industry, including the ethical and environmental considerations of AI and data centre expansion. The industry's transformation journey involves not only technological advancements but also a commitment to sustainable practices and responsible innovation. As companies strive to balance growth with environmental stewardship, the development of energy-efficient technologies and sustainable business models will be crucial. This shift could set new standards for corporate responsibility and influence regulatory frameworks in the telecom sector.
