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April 19.2025
3 Minutes Read

How AI is Transforming Data Center Power and Cooling Solutions

Presenter discussing AI Data Center Power and Cooling Solutions.

Transforming Data Centers: The AI Revolution

The landscape of data centers is undergoing a radical transformation thanks to artificial intelligence, impacting how power and cooling are managed. At the forefront of these discussions was Vlad Galabov, Omdia's Research Director for Digital Infrastructure, who spoke at Data Center World 2025. He predicts that by 2030, AI will account for over 50% of global data center capacity and dominate more than 70% of revenue opportunities.

The Burgeoning Demand for Power

As industries across the globe increasingly adopt AI technologies, the demand for power within data centers is soaring. Galabov emphasized this surge, noting that since late 2023, the installed capacity for power in data centers worldwide has gone from under 150 GW to nearly 400 GW expected by 2030.

At the center of this growing capacity is a paradigm shift towards higher rack densities. The next generation of design, targeting 120 kW per rack with aspirations for 600 kW racks, reflects the aggressive trajectory that data centers are navigating. Each year, approximately 50 GW of new data center capacity is projected to be added, suggesting that half a terawatt will soon become standard.

The Financial Surge in CAPEX Investments

Accompanying the increase in power demands are monumental shifts in capital expenditures (CAPEX) related to the physical infrastructure of data centers. By 2030, global CAPEX for data centers is projected to skyrocket to $1 trillion, contrasting sharply with figures around $500 billion at the end of 2024. The most substantial gains will occur within infrastructure investments, particularly in power and cooling systems, slated to grow at an impressive rate of 18% per annum.

According to Galabov, these investments are crucial as compute and rack densities escalate. The future of data centers may veer away from a scalable server approach towards fewer systems with heightened capabilities, making it essential for operators to stay innovative amidst the ongoing advancements in AI technologies.

Cooling Innovations: A New Frontier

As power demands rise, conventional methods of cooling are nearing their absolute limits. Omdia's Principal Analyst Shen Wang spoke about the cooling implications of this AI-driven power surge. Air cooling, which has been a staple for data center operations, can only support up to 80 Watts per cm². Beyond this threshold, innovations like single-phase direct-to-chip (DtC) cooling are emerging as the best solutions.

This method involves employing water or cooling fluids directly on chips to efficiently dissipate heat, potentially allowing heat management of up to 140 W/cm². Wang anticipates that by 2026, the latest rack designs will surpass the capabilities of existing air cooling methods, further challenging data center operators to adapt and innovate.

Challenges on the Horizon

Despite the optimistic projections, the rise of AI in the data center industry is not without challenges. Galabov cautioned that while many new developments thrive, not all will succeed. Some startups and data center campuses may struggle to establish sustainable business models, especially if they lack technical expertise and strategic acumen.

Galabov's insights serve as a warning for investors: diversification among providers is crucial, as the fast-paced evolution of technology may lead to failures among less prepared competitors.

Looking Ahead: What Does This Mean for Future Developments?

As we gaze into the future of data centers enhanced by AI, one can’t help but ponder the broader implications of these changes. With self-generated data center power set to exceed 35 GW by 2030, dependency on local grids will lessen. Off-grid and behind-the-meter solutions will likely become indispensable for the upcoming generation of data centers.

The integration of AI into operations can foster agility within DevOps teams, enhancing responsiveness and efficiency across all facets of data management. Providing actionable insights to monitor and optimize energy consumption aligns closely with Agile DevOps methodologies, ensuring that energy strategies evolve as quickly as the technologies that require them.

Conclusion: Making Sense of the AI Surge in Data Centers

The sweeping changes in data center management driven by AI offer a clear path toward enhanced efficiency, but they also introduce a host of complexities. For anyone invested in the future of technology infrastructure—whether as an operator, developer, investor, or technologist—the message is clear: engage deeply with the emerging trends, and prepare to adapt to an environment where innovations in power and cooling are no longer options but necessities.

Agile-DevOps Synergy

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