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White paper: The Data Center Supply Chain Shock: Throw Out the Old Rules or Fall Behind

Artificial Intelligence (AI) is fundamentally altering data center purchasing and delivery. Organizations must adapt quickly or risk falling behind in this AI-driven revolution. Unlike past trends, AI is a transformative force reshaping the technological landscape and is here to stay.

This is the corner stone of our new white paper “The Data Center Supply Chain Shock: Throw Out the Old Rules or Fall Behind.” 

Global tech firms are rapidly adopting AI, showcasing its significant impact. As a leading data center developer, CyrusOne has deep insights into the infrastructure needs of organizations, especially those focused on AI. From our observations in budgeting, business plans, and urgency, AI’s impact on the business world is far more than a trend. It is set to be as transformative as the widespread outsourcing of IT infrastructure and services. As AI evolves, its influence on the economy and society will become even more profound. 

Summary

  • AI is fundamentally transforming data center requirements, demanding unprecedented scale and power density (10x greater than traditional data centers), which is creating intense competition for data center capacity, land, and energy resources.
  • This is not a temporary trend but a permanent shift in the industry.The data center supply chain has been dramatically disrupted, with equipment lead times extending from 4-6 months to 24+ months, and hyperscalers are now planning 2-5 years ahead for 300-400 MW campuses.
  • Organizations must adapt to this new reality by enhancing communication with suppliers and adopting longer-term planning horizons.Success in the AI era requires organizations to rethink their approach to data center strategy, including being more flexible about location (prioritizing power availability over latency for AI workloads), forming stronger partnerships with vendors, and potentially working with experienced partners who understand how to handle the extreme power densities and cooling requirements of AI infrastructure.

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