Addressing AI's Energy Hunger: Solutions from Leading Data Center Developers

USA News Group – With the rise of the artificial intelligence (AI) revolution, so too comes a massive increase in energy consumption, drawn by thousands of computers in data centers across the world. According to the International Energy Agency (IEA), global data center electricity demand will more than double from 2022 to 2026, with AI playing a major role in that increase. It’s because of this, there is already skepticism growing over if AI’s insatiable energy demand will jeopardize Big Tech’s climate goals, as it wreaks havoc on global power systems. Working to address these concerns are several players in the AI data center space developing potential solutions, including from Avant Technologies Inc. (OTCQB: AVAI), Tesla, Inc. (NASDAQ: TSLA), Supermicro, Inc. (NASDAQ: SMCI), Digital Realty Trust, Inc. (NYSE: DLR), and Vertiv Holdings Co (NYSE: VRT).

Stepping up to answer one of the major concerns of the AI data center demand issue is Avant Technologies Inc. (OTCQB: AVAI), which recently gave an update of its planned state-of-the-art data centers, outfitted with immersible AI supercomputer servers. Their offering specifically addresses a number of unmet needs in the AI and big data industry’s rapid growth, while also answering key sustainability and infrastructure concerns in the communities they reside in.

Avant expects to lead the way in providing distributed submerged infrastructure solutions,” said William Hisey, CEO of Avant. “With a commitment to innovation and sustainability, the use of high-performance immersible computer servers allows Avant to address the complex challenges of the digital era with cutting-edge solutions while keeping the communities we operate in satisfied that we are committed to green energy facilities.”

As more data centers are being planned and built, communities throughout the country, where these facilities are being developed, are frustrated by the sheer size of some projects and the amount of power that large- scale centers and campuses require. Avant is set to deliver the ultimate in cost-effective, energy-efficient, high-density supercomputing. Their innovative solutions are designed to meet the current and future needs of AI and big data while maintaining a commitment to eco-friendliness.

Avant’s high-density cloud infrastructure will be tailored to address the increasing performance and storage needs of clients in SaaS, AI, machine learning, and big data across various industries. They plan to develop and construct numerous smaller data centers nationwide. Given that data centers are significant energy consumers, with a hyperscaler’s data center using as much power as 80,000 households, Avant's strategic approach ensures efficient and scalable solutions.

“Efficient cooling is therefore a crucial driver of a data center’s profitability,” said Hisey. “. “Cooling accounts for some 40% of a data center’s energy consumption. To that end, Avant will take advantage of cooling and energy efficiency technologies to reduce costs for clients and remain energy efficient.

This offering comes after Avant recently entered into a Binding Letter of Intent (BLOI) with Flow Wave, LLC (FW), a prominent Florida-based firm specializing in immersible computer server technology. The agreement allows for Avant to acquire up to 50 cutting-edge immersible computer servers from FW, in a transaction valued at $50 million.

The concept of cooling with liquids is also being implemented through a joint effort by Tesla, Inc. (NASDAQ: TSLA) and Supermicro, Inc. (NASDAQ: SMCI) for liquid-cooled “Gigafactory” AI data centers. The respective companies’ CEOs Elon Musk and Charles Lian are looking to “lead the liquid cooling technology to large AI data centers,” with Liang estimating the impact of the move “may lead to preserving 20 billion trees for our planet.”

Supermicro’s liquid cooling technology will be implemented in Tesla’s latest cluster, as well as xAI’s similar supercomputer. Supermicro claims direct liquid cooling may offer up to an 89% reduction in electricity costs of cooling infrastructure compared to air cooling. The new expansion to the existing Gigafactory will accommodate 50,000 Nvidia GPUs along with additional Tesla AI hardware to enhance the training capabilities for Tesla's Full Self-Driving feature.

Another large global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions that’s moving towards liquid cooling is Digital Realty Trust, Inc. (NYSE: DLR). Back in May, Digital Realty announced the availability of groundbreaking liquid-to-chip cooling technology to be available in 170 of its data centers globally. According to the company’s press release, this innovative advancement represents a “significant leap forward in addressing the evolving challenges of managing high-density workloads, particularly in the real of AI and data-intensive applications.”

Digital Realty's latest offering builds on the company's standardized high-density colocation services by introducing direct liquid cooling (DLC). This innovation brings liquid directly to customers' infrastructure, enhancing relevance and versatility to meet the growing demands of emerging AI technologies. Their solution is crafted for flexibility and accessibility, offering deployment options in over half of its data centers globally. Plans are underway to extend support to more locations and utilize existing infrastructure to accommodate emerging AI needs.

"We're proud to align with our customers in evolving their infrastructure to support this cutting-edge liquid-to-chip technology, enabling them to land and expand their deployments efficiently and redefine what's possible in the digital age," said Chris Sharp, Chief Technology Officer of Digital Realty. “With this cutting-edge liquid-to-chip cooling technology, we're not just setting a new standard for high-density deployment support, we're revolutionizing the digital infrastructure landscape.”

Another strategy being implemented to address data center energy demands includes the latest from Vertiv Holdings Co (NYSE: VRT) which involves a strategic technology partnership with Ballard Power Systems to support alternative energy usage for data centers. As per the deal, the duo will focus on backup power applications for data centres and critical infrastructures, scalable from 200kW to multiple MWs.

"The unprecedented adoption of artificial intelligence (AI) and high-performance computing (HPC) are driving a need for eco-friendly power solutions for our customers, with a focus on zero-carbon and low-carbon energy alternatives," said Viktor Petik, Vice President of Vertiv Infrastructure Solutions. "The successful fuel cell proof-of-concept with Ballard provides a viable option for customers strengthening their data center sustainability strategy, and those moving to a future-ready Bring Your Own Power (BYOP) model."

Vertiv's Power Module H2 offers a solution for the increasing energy demands of future data centers while ensuring zero GHG emission backup power generation. This prefabricated and factory-tested system provides a rapidly deployable and scalable power infrastructure for new data centers and the ability to retrofit existing sites without redesigning the electrical infrastructure.

At their Delaware, Ohio facility, Vertiv showcased their Power Module H2 solution, which uses industry-ready components. This system integrates two Ballard PowerGen 200kW fuel cell cabinets to power a fully functional decarbonized backup system.

Source: https://usanewsgroup.com/2023/10/26/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/

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