The AI ​​data center dilemma: upgrade or start from scratch

In today’s data-driven landscape, demand for AI shows no signs of slowing down as it becomes entrenched in the daily tasks of businesses and consumers. A report from Goldman Sachs shows that AI-focused tech giants will spend more than $1 trillion in the coming years, with a significant portion of the capital focused on data centers, AI infrastructure and the power grid.

Increased AI investments lead to the need for more AI data centers, which can provide the additional computing capacity needed, but require significantly more power than traditional data centers. For example, in 2022, data centers consumed more than 4% of all electricity in the United States. Driven by AI’s power needs, that number is expected to more than double to 9% by 2030, according to the Electric Power Research Institute. Driving this energy consumption are higher power GPUs deployed in configurations that, at the rack level, will boost energy consumption from the current sub-50 kW range to a MW by 2030. In light of such predictions, data center operators are faced with a crucial decision to ensure long-term AI readiness: upgrade existing infrastructure or build new facilities from scratch.

Vito Savino

Data center and wireline segment leader for OmniOn Power.