2024-07-10 10:59:00 ET
Summary
- Industry stakeholders, led by hyperscalers, are rushing to invest in new data centers capable of delivering AI processing needs.
- New AI data centers and many existing data centers will be fitted with specialized AI hardware, creating opportunities for component suppliers and clean energy suppliers.
- Investments are likely to be ultimately directed towards enabling infrastructure such as cell towers and AI devices, which are needed for AI to achieve its potential at the consumer level.
Originally published on July 3, 2024
The generative AI boom extends far beyond chat assistants. The wider integration of large language models across various technology platforms and processes will need data centers and digital infrastructure capable of managing AI workloads effectively. As a result, new data center construction is increasing and existing data centers are being retrofitted with graphics processing units (GPUs) and other AI hardware, leading to premium leasing rates. Because AI-optimized data centers consume more power, stakeholders are also starting to address power sourcing, potentially with alternative energies like renewables and nuclear. To deliver AI to the average consumer, investments in cell towers and AI devices are expected to grow as well....
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Advancing AI Requires Major Data Center And Digital Infrastructure Upgrades