White Paper - Solving Density, Efficiency and Growth in Colocation
The rapid growth and technological shifts within the data center industry present colocation providers with a complex set of interconnected challenges that span operational, financial, technical, and strategic domains. Successfully addressing these hurdles is essential for sustained success.
Managing Capacity, Density, and Scalability: Accurately planning and managing data center capacity is becoming increasingly difficult. Forecasting demand, particularly with the volatile and often project-based nature of AI training workloads, presents significant uncertainty. Simultaneously, providers face pressure to maximize the utilization of existing space, especially in high-demand markets with record-low vacancy rates. A major technical challenge is accommodating the dramatic increase in rack power densities driven by AI and High-Performance Computing (HPC) workloads. Many existing facilities lack the power distribution and cooling capacity to handle densities moving towards 30kW, 50kW, or even higher per rack. Providers need infrastructure that is not only dense but also flexible enough to adapt to diverse and evolving client requirements for power, cooling, and network configurations.
Optimizing Power and Cooling Efficiency: Power has become a critical constraint and cost factor. Securing sufficient, reliable power from utility grids, which are often strained, is a major hurdle for new developments and expansions. Furthermore, rising energy costs directly impact operational expenditure (OpEx) and profitability. Managing the immense heat generated by high-density server racks is a parallel challenge, necessitating investments in advanced cooling technologies, such as various forms of liquid cooling or highly optimized airflow management systems, to prevent equipment failure and maintain efficiency. Improving overall energy efficiency (often measured by PUE) remains a priority for cost reduction and sustainability, but achieving gains beyond basic measures requires sophisticated monitoring and control strategies.