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Friday, August 18, 2023 10:31:07 AM
AI and the Data Center: Challenges and Investment Strategies
AI applications must be supported by massive compute power, which means larger and more plentiful data centers.
The server computer density required by AI also creates a tremendous amount of heat, and to counter this, innovations in liquid cooling are developing. To support this growth, cloud companies are feverishly looking for land developments where hundreds of mega-watts of power can be supported in just a few years.
“This is already exhausting primary data center markets of its available power capacity and opening expansion opportunities into secondary and tertiary markets,” Cvengros says.
Cvengros notes the major cloud companies are implementing both a self-build and leased data center model moving forward. “Both hyperscale cloud users and colocation providers are rushing to identify high-powered land sites in almost any market to support these massive capacity requirements,” he says.
He points out that in 2023, data center builds announcements of over 100 MW are not uncommon, whereas a decade ago 10 MW was a large requirement. “When hyperscalers are unable to build in a select market due to land, power or supply chain constraints, they may lease a whole data center from a colocation provider, making it difficult for smaller requirements to find adequate space,” he says.
https://www.informationweek.com/data-centers/ai-and-the-data-center-challenges-and-investment-strategies-#
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