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On Tue, 22 Apr, 4:03 PM UTC
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Trends Redefining Data Centers As AI Reshapes Industries
Authored by Shrirang Deshpande, Country Head, Strategic Programmes, Vertiv India As technology advances at an incredible pace, I sometimes reflect on the moment I first stepped into a modern data center. What struck me wasn't just the scale; but the immense possibilities I saw unfolding within those walls. To say the least, data centers today have evolved as the true enablers of breakthroughs that define our times. What was once perceived as static repositories of information has now transformed into engines of progress, evolving in lockstep with the rise of artificial intelligence.
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Trends Redefining Data Centers As AI Reshapes Industries
By Shrirang Deshpande As technology advances at an incredible pace, I sometimes reflect on the moment I first stepped into a modern data center. What struck me wasn't just the scale; but the immense possibilities I saw unfolding within those walls. To say the least, data centers today have evolved as the true enablers of breakthroughs that define our times. What was once perceived as static repositories of information has now transformed into engines of progress, evolving in lockstep with the rise of artificial intelligence. India is at the forefront of a digital transformation unlike anything we've seen before, and we are well-positioned to continue leading this charge. According to reports, 92% of Indian knowledge workers already use AI in the workplace, significantly outpacing the global average of 75%. This reflects the nation's thriving digital ecosystem and ambitious AI strategies, which have all the makings to redefine what it means to be globally AI-ready. Our data center industry exemplifies this momentum. This, however, is not merely a story of scale but a thoughtful process. With initiatives like the Digital Personal Data Protection Act (DPDPA), we're building an ecosystem rooted in trust and innovation. In addition, state-level incentives are ensuring that our infrastructure scales seamlessly, while sustainability efforts are demonstrating that growth can, and must, go hand in hand with responsibility. As someone deeply invested in this transformation, I see data centers as the foundation on which our AI-driven future is being built, and here's how: Power and Cooling When we think of the rapid growth of AI, it's common to get caught up in thinking about breakthroughs and possibilities. However, behind that excitement, there's a critical challenge transpiring that we often overlook, i.e., keeping the data centers powering AI in a cool and efficient manner. The shift from traditional CPUs to advanced GPUs is straining power and cooling systems, demanding innovative solutions. This is where innovation steps in. Methods like immersion cooling and cold-plate technologies are stepping up, efficiently removing heat directly at the source and enabling data centers to meet AI's soaring demands. The Energy Equation Globally, data centers account for 1-2% of electricity consumption, a figure that is expected to rise significantly with the growth of AI workloads and the estimates are 4-8% by 2030. For a country like India, with its ambitious renewable energy targets, this presents both an opportunity and a challenge. India has set its sights on sourcing 50% of its energy from renewables by 2030, creating a unique landscape for the data center industry amid rapid digital expansion. Alternatives like microgrids, fuel cells, and battery technologies are taking the center stage to reduce reliance on traditional power grids. At the same time, India's interest in renewable-powered data centers, with solar and wind energy initiatives, is becoming a key player in slashing down carbon footprints. AI Factories and Collaborative Innovation As AI "factories" begin to take shape, i.e., data centers designed to handle massive loads, the need for collaboration across industries is becoming crucial. Chip developers, infrastructure manufacturers, and utilities are coming together to create strategic roadmaps that enable seamless AI adoption. India's rapidly evolving tech ecosystem, supported by government initiatives, is setting the stage for transformative partnerships. It's like watching a well-coordinated team, where both the public and private sectors come together to drive AI progress like the IndiaAI mission by the Government of India. This collaboration is setting the country up to be a global leader in AI readiness. Governance and Regulation Countries worldwide are stepping up with sovereign AI initiatives and legislation, striving to balance innovation with ethical and environmental concerns. In India, initiatives like Digital India and ongoing efforts around AI governance are laying the foundation for a responsible AI ecosystem. These regulations ensure things are in check while also guiding data centers on how to manage their energy and water usage. It's a thoughtful approach that ensures advancements in AI align with both technological progress and environmental sustainability, promising to shape the future of AI in a responsible way. A Blueprint for the Future Data centers today are agile enablers of AI's transformative power. With each breakthrough in Power, cooling, energy efficiency, and security, we move closer to a future where AI serves as the very framework through which progress is measured. Our country's commitment to technological innovation and sustainable energy solutions positions us as a leader in this global shift, pushing boundaries while ensuring that growth is responsible and inclusive. What lies ahead is not simply an evolution but a reinvention of how we think about AI, technology, and infrastructure. The real question, then, is not just what we will create, but how we will ensure it serves the greater good. The blueprint for the future is being drawn now, and the potential is vast. As we stand on the edge of this new era, the real question is, what will the future look like when these innovations fully take root? The possibilities are vast, and it's up to us to shape them. (The author is Shrirang Deshpande, Country Head, Strategic Programmes, Vertiv India, and the views expressed in this article are his own)
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As AI reshapes industries, data centers are transforming to meet new challenges in power, cooling, and energy efficiency. India emerges as a leader in AI readiness, balancing innovation with sustainability and regulation.
As artificial intelligence (AI) continues to reshape industries, data centers are undergoing a significant transformation to meet the growing demands of this technology. Shrirang Deshpande, Country Head of Strategic Programmes at Vertiv India, reflects on this evolution, noting that data centers have become "true enablers of breakthroughs that define our times" 12.
India is positioning itself as a leader in AI readiness, with 92% of Indian knowledge workers already using AI in the workplace, surpassing the global average of 75% 2. This high adoption rate reflects India's thriving digital ecosystem and ambitious AI strategies, setting the stage for the country to redefine global AI readiness.
The shift from traditional CPUs to advanced GPUs in AI applications is putting unprecedented strain on data center power and cooling systems. To address this, innovative solutions such as immersion cooling and cold-plate technologies are being implemented to efficiently remove heat at the source 2.
With data centers currently accounting for 1-2% of global electricity consumption and projections suggesting an increase to 4-8% by 2030, energy efficiency has become a critical concern 2. India's commitment to sourcing 50% of its energy from renewables by 2030 presents both opportunities and challenges for the data center industry.
To meet these challenges, the industry is exploring alternatives such as:
These initiatives aim to reduce reliance on traditional power grids and decrease carbon footprints 2.
The concept of AI "factories" – data centers designed to handle massive AI workloads – is driving collaboration across industries. Chip developers, infrastructure manufacturers, and utilities are working together to create strategic roadmaps for seamless AI adoption 2.
As AI advances, countries worldwide are developing sovereign AI initiatives and legislation to balance innovation with ethical and environmental concerns. In India, initiatives like Digital India and ongoing efforts around AI governance are laying the foundation for a responsible AI ecosystem 2.
India's rapidly evolving tech ecosystem, supported by government initiatives like the IndiaAI mission, is fostering transformative partnerships between the public and private sectors. This collaboration, combined with the country's commitment to technological innovation and sustainable energy solutions, positions India as a potential global leader in AI readiness 2.
As data centers continue to evolve into agile enablers of AI's transformative power, the focus is not just on technological advancement but also on ensuring responsible and inclusive growth. The blueprint for the future of AI and data centers is being drawn now, with vast potential for innovation that serves the greater good 2.
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The surge in AI-driven demand is transforming data center infrastructure, necessitating innovative approaches to design, sustainability, and workforce management. This shift presents both challenges and opportunities for operators in meeting the evolving needs of AI technologies.
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2 Sources
India's data center industry is set for exponential growth, driven by AI adoption, cloud computing, and 5G rollout. The sector is expected to grow 66% by 2026, attracting $4 billion in investments and adding 604 MW capacity.
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4 Sources
Deloitte's report highlights India's potential as a global AI hub, projecting a need for 50 million sq ft of real estate and 45 TWh of power for data centers by 2030, while emphasizing challenges in infrastructure and policy.
2 Sources
2 Sources
As AI continues to transform enterprise computing, companies are navigating new infrastructure paradigms. From cloud-based solutions to custom on-premises setups, businesses are exploring various options to gain a competitive edge in the AI-driven landscape.
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4 Sources
The rapid growth of artificial intelligence is causing a surge in energy consumption by data centers, challenging sustainability goals and straining power grids. This trend is raising concerns about the environmental impact of AI and the tech industry's ability to balance innovation with eco-friendly practices.
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8 Sources
