AI’s impact on the data center industry is still in very early innings, says Newmark
The impact of artificial intelligence (AI) on the data center market is manifold. Anticipated demand from AI and machine learning (ML) is projected to require significantly more power density requirements; hyperscalers currently require approximately 10–14 kilowatt power density per rack in existing data centers, while expected AI requirements would be approximately 40–60 kilowatt power density per rack, according to Newmark’s fourth quarter 2023 U.S. Data Center Market Report.
Foundation models (large, pretrained machine learning models trained on diverse, massive datasets) and AI applications require enormous computational power for both initial training and inferences to user prompts once in session. As AI and ML models and applications grow more complex, the computational resources required to train and run them are increasing exponentially. Training comes