Industry executives and experts share their predictions for 2024. Read them in this 16th annual VMblog.com series exclusive.
Three Top Predictions for Navigating the Future of Data Centers
By John Bonczek, Chief Revenue Officer at 1547
As 2023 comes to a close, the digital infrastructure industry reflects on a year of transformative change and looks ahead to the emerging trends of data centers in 2024. This past year has been significantly impacted by the rapid expansion of AI-driven requirements. The requirements pose new challenges for data centers in terms of power consumption, space, and cooling, reshaping the industry’s approach to planning and resource allocation as we enter 2024.
Prediction #1: AI will have a profound impact on data center capacity supply & demand in 2024 and the unforeseeable future. AI’s expansion has radically redefined the requirements for data processing and storage, prompting a shift in data center design. With AI-driven needs in mind, there’s been a notable transition to GPU-powered racks. Graphics Processing Units (GPUs) are required for their high-compute and parallel processing capabilities, crucial for AI tasks. However, integrating GPUs into traditionally CPU-centric data center designs poses new challenges. They consume more power, generate additional heat, and demand more space. Providers will need to both expand their technology infrastructure to meet increasing capacity demands and innovate with the next generation of power and cooling technologies for greater efficiency and environmental compliance.
Organizations now face the challenge of rethinking their capacity planning and resource allocation to accommodate high-compute parallel processing tasks. This involves balancing the immediate costs with the future demands of AI technologies, a task that is both financially and logistically demanding. In 2024, this challenge is expected to become even more pronounced, requiring data centers to adopt strategic, long-term planning to stay ahead of the AI curve.
Prediction #2: The growing capacity of technology such as NVIDIA GPUs is driving the need to push the limits of traditional air-cooled solutions and will require the adoption of alternative solutions in 2024 as the data center industry pursues innovative designs and technologies to adopt more far-reaching sustainability practices. According to Markets and Markets, the global data center liquid cooling market is projected to grow from $2.6 billion USD in 2023 to $7.8 Billion USD in 2028 [1]. Technologies such as the Internet of Things (IoT), AI, 5G, and Machine Learning (ML) are accelerating the need for liquid cooling, especially in edge data centers [2]. Traditional air cooling systems have proven inadequate for the high-density, high-heat output environment created by GPUs. For example, NVIDIA is introducing its first sustainability data center GPU with direct chip liquid cooling to reduce the energy impact of AI and other applications [3]. Data centers will see innovative uses of alternative cooling solutions such as chilled water to the cabinet door heat exchangers. These cooling solutions offer enhanced efficiency and are better suited to manage the increased thermal output of GPU-centric environments. In 2024 and beyond, such advanced cooling methods are expected to become more standardized, addressing the thermal management challenges of these high-density computing setups.
Prediction #3: There’s an increasing trend toward developing larger data center footprints to build 1MW+ of power or higher for companies that have high power usage requirements. Although hyperscale companies demand such high power, AI and other power-driven technologies are creating high power demand for non-hyperscale companies as well. As data centers are being built with 1MW+ power, companies with power requirements in the 100kW to 1MW range will find themselves displaced and challenged to find data center providers interested in supporting their lower power requirements.
As we step into 2024, the digital infrastructure sector is poised for further transformation to accommodate governmental and community sustainability standards, economically-driven data center build-outs and retrofitting to accommodate water, cooling, and power, driven by AI and other technological advancements. The industry must remain agile and forward-thinking, integrating advanced technologies and scalable solutions to meet the challenges of an increasingly dense computing landscape. The ability of data centers to evolve, adapt, and innovate in response to these changes will be crucial in successfully navigating the ever-changing, dynamic data-driven, digital landscape.
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ABOUT THE AUTHOR
As the Chief Revenue Officer of fifteenfortyseven Critical Systems Realty (1547) for the last six years, John Bonczek oversees the day-to-day sales and marketing operations of the business, as well as the creation, communication, and implementation of the company’s vision, mission, and strategy. John is a highly respected industry veteran with a reputation for successfully leading top sales organizations in the data center industry.
Prior to joining 1547, John held the position of Vice President at Digital Realty Trust/Telx, for 14 years where he built one of the most successful sales teams in the industry. While at Telx, John created the sales engineering group to deliver customers the highest quality service. John’s prior experience also includes various sales, operations and engineering positions at AT&T, Verizon, Network Plus and Arbros Communications.
John received his undergraduate degree from Seton Hall University, where he continued in the Stillman School of Business, receiving his Master’s in Business Administration.
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[1] https://www.marketsandmarkets.com/Market-Reports/data-center-liquid-cooling-market-84374345.html
