Find out how modernizing data centers can help companies be AI-ready, save energy and reduce operating costs.
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Jan 21, 2024
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The AI-Ready Data Center
Companies are racing to invest in AI. Are their data centers ready?
After years of talking about the potential for artificial intelligence to take the world by storm, it’s finally happening, as companies race to incorporate everything from machine learning-driven predictive analytics to generative AI chatbots into their businesses. And the AI boom is already resulting in bottom-line impacts. About 92% of large companies that have invested in AI are seeing returns on their investments, according to a 2022 survey by NewVantage Partners.
However, success in AI can come at a cost, particularly when it comes to upgrading infrastructure such as data centers that were built to serve more modest needs. A recent forecast by global market intelligence firm IDC shows business investments in AI-centric systems will reach $251 billion by 2027, with a compound annual growth rate of 31.4%.
These infrastructure upgrades are critical, as AI workloads place much more intense demand on servers than traditional applications, says Matt Kimball, vice president and principal analyst, data centers, at Moor Insights & Strategy.
Machine learning, for example, can have a big impact on storage, power and compute needs. “AI puts a big strain on a data center that’s been used to run traditional workloads,” he says. “It’s a completely different set of requirements dictating what kind of infrastructure you need.”
Given the much higher demands that AI places on data centers, companies are wise to start looking at how they’ll equip them with the right infrastructure. Those that don’t modernize risk falling behind in a competitive landscape where speed, agility and actionable insights are key.
High Demand
A dilemma for many companies looking to make AI investments is that data center space is already scarce, says Robert Hormuth, corporate vice president of architecture and strategy in the Data Center Solutions Group at AMD. Companies can’t simply add more racks and consider the job done if there’s no place to put them.
AMD offers a significant performance-per-watt energy efficiency advantage as well as a consolidation advantage. People can now adopt it in their current data centers to help power their AI needs.
Robert Hormuth, Corporate Vice President of Architecture and Strategy, Data Center Solutions Group, AMD
“It’s putting immense pressure on operators, whether on-premises or in colocation centers, to find the space and capacity to bring all these new services online,” he says. “In the past, we always talked about how there was this normal evolution of consolidation, retiring equipment and bringing in more energy efficiency to save cost and power, but now it’s happening at a new level unseen ever before.”
The heightened capacity and computational power demands of AI are creating a race for companies to modernize their data centers. That can mean everything from upgrading servers to higher-performance ones that allow for consolidation—boosting data center capacity—to increasing utilization of their current equipment.
“AMD offers a significant performance-per-watt energy efficiency advantage as well as a consolidation advantage. People can now adopt it in their current data centers to help power their AI needs, rather than spending the huge amount of time and money it would take to build a new data center,” Hormuth says.
Upgrading to servers with the latest generation of CPUs can make a big difference. Today’s 128-core AMD EPYC server processors have two times the computing cores of prior generation processors. This leads to higher levels of performance generation over generation.
EPYC processors can help companies gain the compute power they need for AI while also helping them free up data center space.
“The more cores I can stuff into a server, the more I can do with it,” Kimball says. “If I can double my core count on a per-rack basis, I should be able to reduce my footprint significantly.”
Savings for the Future
It’s important for companies to implement servers with CPUs and GPUs that can facilitate not only the AI models they’re currently planning for, but also those with the compute power and high performance that provide the flexibility to evolve as the models and algorithms progress, Hormuth says. “As the models, algorithms and networking change, having that flexibility to ride the curve is going to be really important,” he adds.
Beyond making way for AI, modernizing the data center also comes with a range of other benefits. In adopting more efficient technologies and strategies, businesses can significantly lower capital expenses and reduce their data center footprint by requiring fewer servers to manage the same workload. This could translate to lower energy consumption and operational costs. “So it’s good from a sustainability perspective, and it’s good from a financial perspective,” Kimball adds.
The 4th Gen AMD EPYC is the right server processor choice as companies look to make their data centers AI-ready, Hormuth says, because it is optimized for higher performance, throughput and
energy efficiency.
“If you look at energy efficiency benchmarks in the industry, you will find AMD EPYC is hands down the leader in overall energy efficiency,” he says. “And to deliver that with fewer servers, again drives that consolidation and helps create that space to bring new innovations in your data center.”