For instance, the power consumption of Nvidia's new GH200 server cluster is about two to four times more than a regular cluster of the same physical size, he estimated. Tom Keane, who oversaw Microsoft's cloud data centers for about two decades, recently warned about this.
The surge in AI demand, and the changes coming, present an opportunity for investors like Ganzi."Massive would be the understatement," he said. One key difference between traditional data centers and new AI facilities is how power is consumed. Regular cloud data centers are designed to handle variable demand. When everyone in the US is working and streaming videos, these facilities are busy. When night falls and most people sleep, usage falls. In contrast, AI data centers run constantly, especially when training big models. That requires increased access to power and the ability to sustain it consistently.
Proximity to smaller urban areas means better power density, which means a faster connection. Smaller cities also mean lower power costs for the data center operator. Ideal locations for future data centers will be in low-cost areas, according Cowen.
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