US data center operator TECfusions has signed an AI infrastructure deal with TensorWave, described as “one of the largest” capacity deals ever made for AI compute.
The deal will see TensorWave lease 1 GW of AI capacity from TECfusions’ data center portfolio, with deployment expected to begin in early 2025.
As part of the agreement, Tecfusion said it will leverage its on-site power generation capabilities to provide reliable services specifically targeted at AI-intensive applications.
“Watershed moment”
In a statement confirming the move, Shawn Novak, Chief Revenue Officer of TECfusions, described the partnership as a “watershed moment in the AI infrastructure landscape.”
“Already home to one of the world’s largest GPU clusters, TECfusions’ Clarksville data center is a testament to TECfusions’ industry-leading infrastructure for the most demanding AI applications and demonstrates our ability to meet the expanded capacity requirements of TensorWave,” he added.
According to the company, the collaboration will also contribute to energy stability in the regional data centers, as well as sustainable growth.
TECfusions said the strategy aims to both provide reliable power for AI workloads, which are energy intensive, but also achieve long-term reductions in energy costs.
Data center energy consumption has skyrocketed in recent years since the advent of generative AI, with the power-hungry technology placing significant strain on data center infrastructure amid rising AI adoption among enterprises.
Darrick Horton, CEO of TensorWave, said the agreement will provide “unparalleled energy independence” and drive scalability of TensorWave’s AI infrastructure initiatives.
“As a company that specializes in providing AMD Instinct Series GPUs (MI300X and MI325x), TECfusions’ rapid deployment model is a game changer for us,” he said.
“Their ability to bring massive AI-ready capacity online in months instead of years significantly accelerates our time to market to support our customers. This partnership is crucial to maintaining our competitive position in the rapidly changing AI sector.”
Going forward, TECfusions will conduct a phased capacity deployment and a “significant portion” of the 1GW power capacity will be available in early 2025. According to TensorWave, this phased approach coincides with expected demand for the coming year.