The Rise of AI Infrastructure: Behind the Scenes of Data Centers Powering the Technology Revolution
If you use generative AI, you know that it can seem like magic. Chatbots and multimedia models can effortlessly conjure up poems or high-res videos at the snap of a finger. But AI models’ speedy outputs and sleek interfaces mask the enormous amount of physical infrastructure behind them—and as AI continues to grow, the data centers and power plants that AI is built on are starting to get widespread attention outside of the industry.
Earlier this week, a visit to Orangeburg, New York, a suburban area just 25 miles from Manhattan, unveiled one of the latest AI infrastructure projects—DataBank’s LGA3 data center site. This $250 million, 200,000-square-foot facility will draw up to 45 megawatts of energy to power five massive data halls filled with computer chips.
CoreWeave, a New Jersey-based AI startup with a valuation of $19 billion, has already booked almost half of LGA3’s capacity, highlighting the growing demand for AI infrastructure. CEO Raul Martynek emphasized the exponential increase in demand for digital infrastructure driven by AI, comparing it to the dot-com bubble of the late ’90s.
Data centers play a crucial role in supporting AI technology, with Martynek explaining that most online activities involve physical hardware. With the rise of AI, data centers have become a bottleneck in meeting the demand for storage and processing power.
The construction of data centers is attracting significant investment and attention, with companies like AECOM Tishman, known for projects like the World Trade Center, getting involved in building these facilities. While the location of data centers in places like New York might seem surprising due to high costs, the proximity to businesses that depend on computing capacity justifies their presence in metropolitan areas.
Governor Kathy Hochul’s Empire AI initiative in New York reflects the importance of public policy in supporting data center projects. With New York being a major data center market, the demand for such facilities continues to grow, especially with the boom in AI technology.
Walking through the LGA3 construction site, the scale of the building and the infrastructure required to support it became apparent. The facility, once operational, will provide computing capacity to AI companies and tech startups, highlighting the frenzy in the industry.
As DataBank plans for another site, LGA4, it’s clear that the AI data center boom is just beginning. The physical ecosystem supporting AI technology, from data centers to fiber optic cables, plays a vital role in enabling the digital innovations that have become an integral part of our daily lives.
https://www.forbes.com/sites/tomgroenfeldt/2024/05/15/data-center-demands-grow-in-the-south/?sh=75f4f4be857d , forbes.com , https%3A%2F%2Fwww.forbes.com%2Fsites%2Ftomgroenfeldt%2F2024%2F05%2F15%2Fdata-center-demands-grow-in-the-south%2F , Data Center Demands Grow in the South – Forbes , ,