Skip to content
Tiatra, LLCTiatra, LLC
Tiatra, LLC
Information Technology Solutions for Washington, DC Government Agencies
  • Home
  • About Us
  • Services
    • IT Engineering and Support
    • Software Development
    • Information Assurance and Testing
    • Project and Program Management
  • Clients & Partners
  • Careers
  • News
  • Contact
 
  • Home
  • About Us
  • Services
    • IT Engineering and Support
    • Software Development
    • Information Assurance and Testing
    • Project and Program Management
  • Clients & Partners
  • Careers
  • News
  • Contact

Hungry for resources, AI redefines the data center calculus

The AI revolution is driving demand for massive computing power and creating a data center shortage, with data center operators planning to build more facilities. But it’s time for data centers and other organizations with large compute needs to consider hardware replacement as another option, some experts say.

Data centers are running at near capacity in many areas of the world, according to the Global Data Center Trends 2024 report from CBRE, a real estate services firm. Singapore’s data centers have a 1% vacancy rate, and data center availability in the huge northern Virgina data center hub stands at 0.9%, despite an 18% increase in capacity between early 2023 and early 2024, according to the report.

The 2023 CBRE report found that 83% of the data center capacity under construction at the time was presold.

While there’s more than 10% of capacity available in Europe, Latin America, and the greater Asia Pacific region in 2024, the growth of AI, cloud computing providers, and other power-hungry applications requires a new approach to data center operations, the report says. “High-performance computing will require rapid innovation in data center design and technology to manage rising power density needs,” it adds.

A current data center building boom isn’t likely to stop soon, with credit rating firm Moody’s, in a July 15 report, projecting that global capacity will double in the next five years. But with finding space for new data centers becoming increasingly difficult, some experts say it’s a good time for data center operators, cloud computing providers, and companies running AI and other major workloads in house to think about replacing old hardware instead.

Efficiency is money

Modern CPUs not only offer more computing power, but they also are more power efficient than older models and generally take up much less data center space, some advocates say. Using new CPUs, data centers can consolidate servers running tens of thousands of cores into less than 50 cores, says Robert Hormuth, corporate vice president of architecture and strategy in the Data Center Solutions Group at AMD.

An estimated 100 million 5-year-old servers are still in operation, partly because the COVID-19 pandemic stalled some planned upgrades, Hormuth says. About 21 million new servers could replace those old machines, leaving data centers and in-house server rooms more space to add computing power.

With power efficiency gains and other savings, a large-scale hardware replacement could give data center operators and other hardware-dependent organizations a return on investment in as little as two months, Hormuth claims. Meanwhile, building a new data center can cost hundreds of millions of dollars.

Power efficiency gains of new hardware can also give data centers and other organizations a power surplus to run AI workloads, Hormuth argues.

“That’s the race that seems to be going on in enterprises: ‘How do I go make room and power to do AI?’” he adds. “That pressure is just really driving the enterprise customers, whether it be in a co-lo or create their own, to get those capabilities.”

Big upgrades ahead

While AMD has a dog in this hardware-replacement fight, several other IT experts also say it’s a good time to replace servers and other hardware. Many data center operators appear to be thinking the same way, with Gartner projecting a 24.1% data center spending increase, covering servers, external storage, and network equipment, in 2024. Data center spending, which doesn’t include new buildings in Gartner’s calculations, saw just 4% growth in 2023, Gartner says.

Jim Warman, vice president of infrastructure architects and engineers at Myriad360, a data center and cybersecurity consulting firm, sees the same trend. Many hardware users are prioritizing replacement.

“Businesses are recognizing the advantages of modernizing their infrastructure to support new applications and services, reduce costs, and maintain competitiveness,” he adds. “The emphasis is on utilizing the latest technology to drive business growth and operational efficiency.”

With data centers near capacity in the US, there’s a critical need for organizations to consider hardware upgrades, he adds. The shortage is exacerbated because AI and machine learning workloads will require modern hardware.

“Modern hardware provides enhanced performance, reliability, and security features, crucial for maintaining a competitive edge and ensuring data integrity,” Warman says. “High-performance hardware can support more workloads in less space, addressing the capacity constraints faced by many data centers.”

The demands of AI make for a compelling reason to consider hardware upgrades, adds Rob Clark, president and CTO at AI tool provider Seekr. Organizations considering new hardware should pull the trigger based on factors beyond space considerations, such as price and performance, new features, and the age of existing hardware, he says.

Older GPUs are a prime target for replacement in the AI era, as memory per card and performance per chip increases, Clark adds. “It is more efficient to have fewer, larger cards processing AI workloads,” he says.

While AI is driving the demand for data center expansion and hardware upgrades, it can also be part of the solution, says Timothy Bates, a professor in the University of Michigan College of Innovation and Technology. Data center operators can use AI to monitor efficiency, he says.

“By using AI tools to predict and manage hardware degradation — such as PCIe cards, SSDs, and memory components — businesses can replace individual components rather than entire systems, optimizing costs and extending the lifespan of existing infrastructure,” Bates says. “This approach, combined with strategic hardware upgrades, can maximize the efficiency and performance of data centers.”


Read More from This Article: Hungry for resources, AI redefines the data center calculus
Source: News

Category: NewsAugust 2, 2024
Tags: art

Post navigation

PreviousPrevious post:20 certificaciones de gestión de TI para líderes tecnológicosNextNext post:How Karolinska is modernizing its approach to IT

Related posts

SAS supercharges Viya platform with AI agents, copilots, and synthetic data tools
May 8, 2025
IBM aims to set industry standard for enterprise AI with ITBench SaaS launch
May 8, 2025
Consejos para abordar la deuda técnica
May 8, 2025
Training data: The key to successful AI models
May 8, 2025
Bankinter acelera la integración de la IA en sus operaciones
May 8, 2025
The gen AI at Siemens Mobility making IT more accessible
May 8, 2025
Recent Posts
  • SAS supercharges Viya platform with AI agents, copilots, and synthetic data tools
  • IBM aims to set industry standard for enterprise AI with ITBench SaaS launch
  • Consejos para abordar la deuda técnica
  • Training data: The key to successful AI models
  • Bankinter acelera la integración de la IA en sus operaciones
Recent Comments
    Archives
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023
    • June 2023
    • May 2023
    • April 2023
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    Categories
    • News
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Tiatra LLC.

    Tiatra, LLC, based in the Washington, DC metropolitan area, proudly serves federal government agencies, organizations that work with the government and other commercial businesses and organizations. Tiatra specializes in a broad range of information technology (IT) development and management services incorporating solid engineering, attention to client needs, and meeting or exceeding any security parameters required. Our small yet innovative company is structured with a full complement of the necessary technical experts, working with hands-on management, to provide a high level of service and competitive pricing for your systems and engineering requirements.

    Find us on:

    FacebookTwitterLinkedin

    Submitclear

    Tiatra, LLC
    Copyright 2016. All rights reserved.