Is the Data Center Industry Accelerating Into a Wall?

Predictions and restrictions for the AI transformation

In the ever-evolving landscape of technology, the data center industry finds itself at a pivotal moment, poised on the cusp of unprecedented growth and innovation. Weekly, if not daily, forecasts from industry experts herald a future where our hyperscale data centers surge into hyper-speed, driven not only by the burgeoning cloud but also by the exponential rise of artificial intelligence (AI).

Mark Ganzi of Digital Bridge, featured in the Cover Story of  InterGlobix Magazine Issue 3, estimates the AI “opportunity” in data center capacity to be around 38GW, a figure echoed by Michael Dell, who suggests we may require a staggering 100-fold increase in data center capacity within the next decade. Jensen Huang of Nvidia adds to this chorus by projecting a 2 trillion USD surge in data center investments to power software worldwide over the next four to five years.

These forecasts, though speculative, are grounded in observable trends. Dominion Energy’s recent announcement regarding Virginia’s data center capacity, for instance, illustrates the tangible momentum propelling this industry forward. The projected market size of 10GW by 2035 represents a seismic shift from current levels, highlighting the pressing need for expansion.

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