The data center industry is experiencing a seismic shift as artificial intelligence (AI) emerges as a transformative force. At infra/STRUCTURE 2024, held in September at the Wynn Las Vegas, a panel of industry veterans shared their insights on how AI is reshaping the data center landscape and the challenges that lie ahead. Moderated by Jabez Tan, Head of Research with Structure Research, the panel featured Chris Crosby, CEO of Compass DataCenters; Wes Swenson, CEO of Novva Data Centers; and Laura Ortman, CEO of Cologix.
Unprecedented Scale and Growth
Panelists emphasized the extraordinary impact of AI on the data center industry. Crosby highlighted the magnitude of this transformation, stating, “AI is bigger than all of us, magnitudes more than cloud is what we’re seeing. It’s just shocking to see and to see where things are going”. Swenson agreed, revealing the dramatic increase in scale Novva Data Center is experiencing, “As far as scale goes, it’s gone from about 500 megawatts to about three gigawatts by 2027.”
Power Availability and Grid Interconnection Challenges
A critical focus of the discussion was the role of power availability and grid interconnection in supporting AI infrastructure. Swenson detailed the complexities of power availability across different regions, “It’s complicated, state by state, region by region… In Utah, the problem is the regulated utility market, Pacific corps, they have wildfire mitigation that’s limited their amount of capital. These are regulated utilities under BDCs. They can’t just go get three gigawatts and bring it on. If they do, it comes from Wyoming, and it has to go through transmission lines that take years. So they’re really limited in Utah.”
Interconnection and Flexibility
Ortman stressed the importance of interconnection and flexibility in meeting AI demands, “We have to continually look at optionality for our customers, flexibility, especially around how they look at designs, compute, interconnection, all of those things. So it’s definitely a learning process for our customers and all of us in the industry”.
Industry Responsibility in Addressing Power Challenges
The panelists agreed that the data center industry bears significant responsibility in addressing the power and infrastructure challenges posed by AI. Swenson asserted, “I think this is our problem. I just don’t feel…like the bridge. You’re talking magnitudes of power…we feel like we can create lower emissions and greener power if we control it ourselves”.
As AI continues to drive unprecedented demand for data center infrastructure, the industry faces both exciting opportunities and significant challenges. Addressing power availability while enhancing interconnection will be crucial as data center providers strive to meet the evolving needs of AI workloads.
Attendees of the annual infra/STRUCTURE summit receive a copy of the presentation materials.
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