The Rise of AI-Powered Data Centers and 5G: Are We Ready for Cyber Threats?

Since their creation, data centers were used solely as storage hubs, quietly holding our emails, photos, and business files. Today, however, they’ve become the powerhouses of the digital world, fueling the rise of artificial intelligence. Despite being a major advancement in digital innovation, data center’s have a small catch. The more we rely on AI and 5G, the more attractive our online systems become to cybercriminals. These systems hold valuable data, control critical services, and operate at speeds that leave little room for error. A single breach could bring all allied industries to a standstill. Here’s the real question—can we keep it safe?

The demand for data centers continues to expand with the proliferation of virtual data. AI applications are growing in both complexity and scale, and companies are building larger, more powerful facilities to keep pace. Unlike traditional workloads, AI models need massive computing power, specialized chips (like GPUs and TPUs), and advanced cooling systems to prevent overheating. The global AI data center market size was valued at USD 12.95 billion in 2023. The market is projected to grow from USD 15.13 billion in 2024 to USD 94.03 billion by 2032, exhibiting a CAGR of 25.7% during the forecast period.

But herein lies the problem: the demand for data centers is surpassing that of the supply. While the adoption and acceptance of AI is growing, building and scaling data centers takes time and heavy investment due to how long it takes to create them. This disconnect is creating a looming capacity crunch. With more data being funneled into fewer, larger facilities, the stakes of a cyberattack become even higher. Hackers know these data hubs are goldmines, holding valuable intellectual property, customer information, and proprietary AI models, making them prime targets.

5G: Speeding Up the Risk

5G is best known for making everything faster and more connected. With its lightning-fast speeds and low latency, 5G networks are enabling AI to run at the edge. Similar to that autonomous cars making instant decisions or AI-powered healthcare devices tracking patients in real time.

A recent research report by Benton Institute of Broadband and Society, highlights the rapid utilization of 5G. According to the study, 5G global connections reached nearly 2 billion in Q1 2024, with 185 million new additions in the first quarter alone. The report projects that 5G connections will soar to 7.7 billion by 2028, driven by expanding coverage, rising demand for high-speed data, and the growing adoption of IoT devices.

But this speed comes with a security trade-off. Unlike older networks, 5G uses a decentralized architecture with more entry points, making it harder to secure. Even a single weak link—an unprotected IoT device or misconfigured network node—could open the door to widespread cyberattacks.

The Cyber Threats Are Real—And Growing

These risks aren’t just theoretical, they’re becoming a reality. In recent years, we’ve seen major data center breaches and attacks on critical infrastructure. A ransomware attack on a data center could lock companies out of their own AI models for an unprecedented amount of time. A targeted breach on a 5G-powered transportation system could disrupt entire cities.

And with AI itself being used to launch smarter, faster attacks, the cyber threat landscape is evolving. Hackers are using AI to automate phishing campaigns, bypass security protocols, and find vulnerabilities faster than ever before.

Are We Ready?

To protect AI-powered data centers and 5G networks, companies need to rethink their security strategies. Here’s what they can do:

● AI-Powered Security: Companies must use AI to detect and stop threats in real time. AI-driven security systems can monitor massive data flows, spot unusual patterns, and block suspicious activity before it spreads.

● Zero-Trust Networks: Trust no one by default. With 5G’s distributed nature, companies need to verify every device, user, and application trying to access their systems—even if they’re inside the network.

● Data Segmentation:  By isolating AI workloads from other systems, companies can contain the damage if one part of the network is compromised.

● Real-Time Monitoring: With 5G’s high-speed connectivity, security teams need continuous, real-time monitoring to detect and stop threats instantly.

● Stronger Encryption: Encrypting sensitive AI data ensures that even if attackers steal it, they can’t use it.

The Road Ahead: Balancing Innovation with Security

Though the year has just started, 2025 has proven that AI, 5G, and data centers will remain key drivers of innovation, reshaping industries and everyday life. We can expect faster AI adoption, wider 5G coverage, and a growing reliance on edge computing for real-time decision-making. However, with this progress, cyber threats will intensify, pushing companies to adopt AI-powered security, zero-trust networks, and stronger encryption. The demand for data centers will fuel capacity expansion and drive sustainable infrastructure innovations. Balancing technological growth with robust security will be key to shaping a safe and resilient digital future.

-By Gopi Sirineni, CEO and Co-founder, Axiado