The advancement and permeation of artificial intelligence (AI) have generated much speculation in recent years. From revolutionizing how we work, learn, play, and travel to driving the decarbonization of industries, AI has the potential to bring about significant transformation in various sectors. While the internet connected people and facilitated communication, AI is more about machines taking action - creating, predicting, automating, and optimizing. However, for AI to reach its full potential, it requires substantial computational power, network speed, and capacity, which can be achieved through dedicated data center infrastructure.
Contrary to what some AI enthusiasts claim, the necessary data center architecture required for the widespread adoption of AI is not readily available. To enable the step change that AI promises, we need substantial and dedicated data center capacity, with a focus on edge locations closer to users and data. This ensures that the computational power and storage required for AI applications are readily accessible.
Several trends, both macro and micro, are impacting the data center industry's ability to support AI as we head into 2024. One of the core requirements for new data center capacity is sustainability. Many countries and local jurisdictions now demand that data center designs prioritize efficiency, water conservation, and renewable energy sources. Restrictive countries like Germany are even stipulating that the excess heat generated by data centers be reused constructively. As the world becomes more conscious of environmental concerns, sustainable operations will play a crucial role in obtaining permits for data centers and ensuring their long-term viability.
Another concern when adding data center capacity is the potential shortage of utility power. As data center capacity grows at a faster rate than utility power can be added, renewable projects face delays due to supply chain issues, legal hurdles, and equipment installation challenges. However, the relationship between data center capacity and utility power does not necessarily have to be one-to-one. By collaborating with local utilities, data center operators can offload a significant portion of their demand during peak usage times, reducing strain on the electrical grid.
2024 will also likely be the year when governments worldwide find better ways to integrate distributed renewable power into the grid. Currently, bureaucratic processes and outdated applications cause lengthy connection queues for distributed renewable energy projects. This year could bring significant advancements in streamlining these processes, allowing for faster integration of renewable power and making it more accessible to data center operators.
However, renewable power does come with its challenges, primarily its intermittent capacity due to weather conditions. To ensure stability in electricity supply, data center operators will have to invest in on-site energy storage. This enables them to store surplus renewable energy and use it during periods when the supply is low or non-existent. Besides enhancing resilience, on-site energy storage also helps reduce reliance on carbon-emitting generators, aligning with the goal of decarbonization.
Furthermore, 2024 holds great promise for two key advancements in the data center industry: edge computing and liquid cooling. With the rise of edge AI, there will be a growing demand for AI models closer to users and data. This will drive the need for workflow automation, making existing systems and processes more efficient in industries such as transportation, manufacturing, and healthcare. Liquid cooling, on the other hand, is becoming essential to handle the increasing heat generated by powerful servers designed for AI applications. Server manufacturers are incorporating liquid piping to efficiently dissipate the excessive heat, surpassing the limitations of traditional air cooling methods.
With the promise of AI and its wide-ranging applications, data center capacity becomes an indispensable enabler. The year 2024 will be a test for data centers as they rise to meet the challenges brought on by AI. However, given the advancements in sustainable design, collaboration with utilities, integration of renewable power, and the adoption of edge computing and liquid cooling, it is expected that data centers will indeed rise to the occasion.
In summary, the potential of AI is tremendous, and it heavily relies on robust data center infrastructure. As global demand for AI grows, it is crucial to invest in the expansion and optimization of data center capacity. By embracing sustainability, collaborating with utilities, integrating renewable power, and adopting innovations like edge computing and liquid cooling, data centers can effectively support the AI-driven future that lies ahead.
