As we approach 2035, the global appetite for computing power is set to explode. Artificial intelligence (AI), cloud computing, quantum systems, and edge technologies are not just advancing, they are converging. This convergence is reshaping the demands placed on the foundational elements of the digital economy: silicon, spectrum, and sovereignty. The future of computing will not only be defined by technical innovation but also by how countries and corporations navigate supply chains, connectivity, and control.
This analysis explores how global computing needs will reshape these three domains—and why businesses, policymakers, and innovators must act now to remain competitive.
1. Silicon: The Engine Driving Next-Gen Compute
The semiconductor industry is being reimagined in the face of massive computational demand. Moore’s Law is slowing, but the world’s reliance on processing power is accelerating. By 2035, it is expected that global AI workloads alone will require up to 10 times the silicon capacity compared to 2025 levels, according to projections from the Semiconductor Industry Association (SIA). To meet this demand, the industry is reinventing design, fabrication, and packaging paradigms.
What Advances Will Define the Future of Silicon?
Chipmakers are embracing architectural breakthroughs to meet emerging workloads:
- Chiplet architectures: Instead of traditional monolithic dies, smaller functional chiplets are combined using advanced interconnects, which enhances yield and customization.
- 3D packaging and stacking: Enables higher bandwidth and better thermal performance by integrating memory and logic layers vertically.
- Heterogeneous integration: Brings together diverse processor types, including CPUs, GPUs, FPGAs, and dedicated AI accelerators, on a unified die or package for targeted compute optimization.
For example, Intel’s Foveros and AMD’s Infinity Fabric technologies are being used to develop highly modular processors that scale from data centers to edge devices.
How Will Photonics Revolutionize Computing?
With data movement becoming a greater bottleneck than computation, silicon photonics offers a high-bandwidth, low-latency pathway. Photonic integrated circuits (PICs), which transmit data using light instead of electrons, can reduce power consumption in data centers. Photonic integrated circuits (PICs) use light instead of electricity to transmit data, drastically reducing latency and energy loss.
Cloud providers like Amazon and Google are deploying optical interconnects within data centers to support petabyte-scale AI training, while startups like Ayar Labs are developing photonic chiplets for next-generation AI clusters. These solutions are already in development for optical AI clusters, disaggregated data centers, and even quantum interconnects.
Why Are Compound Semiconductors Critical?
Silicon alone is not sufficient for future computing needs. Gallium Nitride (GaN) and Indium Phosphide (InP) enable ultra-fast switching and power handling in 5G, automotive radar, and satellite communication.
Meanwhile, graphene and 2D materials are under exploration for neuromorphic computing, while carbon nanotube transistors (CNTs) could take logic scaling beyond 1nm.
What Challenges Lie Ahead?
Despite technological breakthroughs, major headwinds persist:
- Supply chain exposure: Semiconductor fabrication is critically dependent on vast quantities of ultra-pure water, typical fabs consume 2–10 million gallons per day, making them highly vulnerable to droughts and water scarcity exacerbated by climate change.
- Skills gap: Europe alone faces a growing semiconductor talent shortfall, with up to 350,000 unfilled roles projected by 2030, according to EU-backed initiatives like CHIPS of Europe and ESIA.
- Security risks: With chips at the heart of every system, hardware-level security is essential. A landmark overview in Communications of the ACM confirms that Spectre‑class speculative execution attacks were verified in all processors tested, including numerous designs from Intel, AMD, and ARM.
- Capital intensity: Building a cutting-edge fab can cost over USD 20 billion. Only a few firms, including TSMC, Intel, Samsung, have the scale to invest, concentrating power and limiting global resilience.
As silicon becomes central to geopolitical strategy, long-term resilience will depend on diversification of materials, foundry access, and workforce development.
2. Spectrum: The Lifeline of Distributed Intelligence
With computing extending beyond the cloud to the edge and end devices, seamless connectivity is becoming indispensable. The ability to access and manage spectrum efficiently will dictate future performance and reliability.
The cloud computing market is projected to grow from USD 707.94 billion in 2024 to USD 1,985.83 billion by 2031 by 2035, at a CAGR of 15.88%. Meanwhile, the multi-cloud and hybrid cloud market is growing rapidly as businesses seek flexibility and redundancy.
How Will Next-Gen Networks Shape Compute Delivery?
Next-gen computing requires synchronized deployment of:
- 5G/6G networks for ultra-low latency and high throughput.
- Fiber-optic backbones that support exponential bandwidth.
- Wi-Fi 7 and private 5G to support enterprise-grade connectivity.
The evolution to terahertz (THz) spectrum and low Earth orbit (LEO) satellite internet (e.g., Starlink, OneWeb) will also play pivotal roles in bridging infrastructure gaps, especially in remote regions.
How Will Energy Demands Influence Spectrum Strategy?
According to the International Energy Agency (IEA), global electricity demand from data centres is expected to more than double by 2030, reaching approximately 945 terawatt-hours (TWh). In the United States alone, data centres are projected to drive nearly half of the country’s total increase in electricity demand over the same period.
This will push companies to explore:
- Liquid cooling systems to improve efficiency
- Green data centers powered by solar, wind, or hydrogen
- AI-optimized network management to balance compute loads dynamically
3. Sovereignty: Navigating the New Geo-Tech Paradigm
Digital sovereignty is now a boardroom and cabinet-level issue. The convergence of technological dominance and geopolitical competition is reshaping global policies.
Why Are Governments Pursuing Tech Independence?
The European Union has set an aggressive target of achieving 20% of global chip production by 2030 under the EU Chips Act. The U.S. CHIPS and Science Act has earmarked over USD 52 billion for domestic semiconductor manufacturing, while India’s Semiconductor Mission is offering over USD 10 billion in subsidies to attract fab investments.
China’s “Made in China 2025” plan continues to push self-reliance in advanced technologies, and Taiwan and South Korea are doubling down on foundry dominance.
How Is Data Becoming a Geopolitical Asset?
Data localization laws, digital trade barriers, and scrutiny of cross-border cloud infrastructure are redefining business models. Nations are asserting sovereignty by:
- Mandating onshore cloud data hosting
- Controlling spectrum licenses for national security
- Enforcing AI and cybersecurity regulations tied to local jurisdiction
What Are Enterprises Doing to Adapt?
Enterprise approaches are changing in response to increased concerns about semiconductor availability. By the end of 2026, nearly 29% of downstream companies anticipate a significant increase in chip demand, underscoring concerns about impending supply shortages. As a result, around one in three of these companies (~33%) are actively investigating or are currently working on creating their own chips in order to improve customization, secure supply, and lessen reliance on third-party suppliers.
Global hyperscalers like AWS, Google, and Microsoft are investing in custom silicon (e.g., AWS Graviton, Google TPU, Microsoft Maia) to reduce dependency and optimize workloads.
Moreover, digital sovereignty extends to quantum and AI governance—areas where international cooperation remains limited and rules are still evolving.
Strategic Outlook: Preparing for a Compute-driven Future
The next decade will be defined by a fundamental reshaping of the digital landscape. Strategic clarity and cross-sector collaboration are essential.
Key imperatives include:
- Building resilient supply chains with diverse fabrication and packaging ecosystems
- Investing in human capital through upskilling programs and global tech talent mobility
- Standardizing open architectures and interfaces for interoperability
- Embedding sustainability at the infrastructure level through energy benchmarking and circular design
Leaders must adopt a holistic approach, including merging innovation, policy, and partnerships, to scale responsibly.
Conclusion: The 2035 Imperative
By 2035, computing will not just support economies, it will define them. Silicon will determine who builds. Spectrum will determine who connects. Sovereignty will determine who controls.
The race is already underway. Those who prepare today will own the digital engines of tomorrow. Those who don’t will be forced to license them, at a premium.
Business as usual is no longer an option. The future of compute is strategic, sovereign, and global.
