In a year marked by global economic challenges, the data center industry stands resilient, driven by the transformative force of generative AI (GenAI). Holland Barry, Senior Vice President and Field CTO of Cyxtera, anticipates a positive trajectory for the data center landscape in 2024.
GenAI Sparks Investment Surge
GenAI has been a catalyst for increased investments in data centers, and this trend is expected to intensify in 2024. As businesses embrace GenAI, the need to upgrade aging infrastructure becomes imperative for optimal performance, setting the stage for a technology-driven evolution.
Technology Shifts and Infrastructure Upgrades
2024 will shine a spotlight on IT infrastructure, with organizations recalibrating their reliance on public clouds in favor of more cost-efficient hybrid solutions. Liquid cooling technologies will witness growing interest, offering advanced cooling options in higher-density deployments. The industry is poised for a technology-driven transformation.
AI Integration and Upskilling
AI’s impact on data center operations will become more tangible as organizations move beyond experimentation to solve specific business problems. AI solutions will enhance operational efficiency, sustainability, and security within data centers. The path forward involves significant investments not only in AI but also in upskilling teams to effectively integrate and manage this technology.
Data Center Racks Demand More Power
The rapid rise of GenAI and higher-density deployments has accelerated the need for increased power in data center racks. As technology advances, providers must leverage innovative cooling technologies and design schemes to keep pace with the evolving landscape, ensuring they can meet the demands of next-generation technology.
Liquid Cooling Gains Traction
While liquid cooling technologies are gaining traction, widespread adoption may take a few years due to upfront investments and complexities. Interest is surging, but only the most sophisticated enterprises currently deploy these solutions. Anticipate modest short-term investments with the potential for exponential growth as technology standardization and OEM support increase.
Cloud Recalibration
In response to financial challenges, organizations are recalibrating their approach to the public cloud. The move towards cloud recalibration is gradual, with some big brands leading the way and providing valuable insights for others to follow. Hybrid solutions and alternatives, such as bare metal-as-a-service (BmaaS), gain prominence, offering flexibility and scalability with the predictability and control of private offerings.
Proximity to Data Gains Significance
In the realm of AI, machine learning, and high-performance computing, the proximity of data to compute becomes crucial. Organizations are reevaluating the placement of workloads, considering private clouds or purpose-built AI clouds for enhanced performance and cost efficiency.
AI/ML Spend and Adoption Continues
Despite macroeconomic challenges, AI/ML spend and adoption will persist and grow in 2024. GenAI presents a significant opportunity for the data center industry to drive technological change and innovation breakthroughs, positioning itself as a broker for these advancements.
As Holland Barry reflects on the predictions for 2024, the growth in AI/ML adoption stands out amid dynamic changes in technology infrastructure. The data center industry is poised to navigate these shifts, serving as a catalyst for innovation breakthroughs in a rapidly evolving landscape.
