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This architect wants to build cities out of lava

Arnhildur Pálmadóttir was around three years old when she saw a red sky from her living room window. A volcano was erupting about 25 miles away from where she lived on the northeastern coast of Iceland. Though it posed no immediate threat, its ominous presence seeped into her subconscious, populating her dreams with streaks of light in the night sky. Fifty years later, these “gloomy, strange dreams,” as Pálmadóttir now describes them, have led to a career as an architect with an extraordinary mission: to harness molten lava and build cities out of it. Pálmadóttir today lives in Reykjavik, where she runs her own architecture studio, S.AP Arkitektar, and the Icelandic branch of the Danish architecture company Lendager, which specializes in reusing building materials. The architect believes the lava that flows from a single eruption could yield enough building material to lay the foundations of an entire city. She has been researching this possibility for more than five years as part of a project she calls Lavaforming. Together with her son and colleague Arnar Skarphéðinsson, she has identified three potential techniques: drill straight into magma pockets and extract the lava; channel molten lava into pre-dug trenches that could form a city’s foundations; or 3D-print bricks from molten lava in a technique similar to the way objects can be printed out of molten glass. Pálmadóttir and Skarphéðinsson first presented the concept during a talk at Reykjavik’s DesignMarch festival in 2022. This year they are producing a speculative film set in 2150, in an imaginary city called Eldborg. Their film, titled Lavaforming, follows the lives of Eldborg’s residents and looks back on how they learned to use molten lava as a building material. It will be presented at the Venice Biennale, a leading architecture festival, in May.  Set in 2150, her speculative film Lavaforming presents a fictional city built from molten lava.COURTESY OF S.AP ARKITEKTAR Buildings and construction materials like concrete and steel currently contribute a staggering 37% of the world’s annual carbon dioxide emissions. Many architects are advocating for the use of natural or preexisting materials, but mixing earth and water into a mold is one thing; tinkering with 2,000 °F lava is another.  Still, Pálmadóttir is piggybacking on research already being done in Iceland, which has 30 active volcanoes. Since 2021, eruptions have intensified in the Reykjanes Peninsula, which is close to the capital and to tourist hot spots like the Blue Lagoon. In 2024 alone, there were six volcanic eruptions in that area. This frequency has given volcanologists opportunities to study how lava behaves after a volcano erupts. “We try to follow this beast,” says Gro Birkefeldt M. Pedersen, a volcanologist at the Icelandic Meteorological Office (IMO), who has consulted with Pálmadóttir on a few occasions. “There is so much going on, and we’re just trying to catch up and be prepared.” Pálmadóttir’s concept assumes that many years from now, volcanologists will be able to forecast lava flow accurately enough for cities to plan on using it in building. They will know when and where to dig trenches so that when a volcano erupts, the lava will flow into them and solidify into either walls or foundations. Today, forecasting lava flows is a complex science that requires remote sensing technology and tremendous amounts of computational power to run simulations on supercomputers. The IMO typically runs two simulations for every new eruption—one based on data from previous eruptions, and another based on additional data acquired shortly after the eruption (from various sources like specially outfitted planes). With every event, the team accumulates more data, which makes the simulations of lava flow more accurate. Pedersen says there is much research yet to be done, but she expects “a lot of advancement” in the next 10 years or so.  To design the speculative city of Eldborg for their film, Pálmadóttir and Skarphéðinsson used 3D-modeling software similar to what Pedersen uses for her simulations. The city is primarily built on a network of trenches that were filled with lava over the course of several eruptions, while buildings are constructed out of lava bricks. “We’re going to let nature design the buildings that will pop up,” says Pálmadóttir.  The aesthetic of the city they envision will be less modernist and more fantastical—a bit “like [Gaudi’s] Sagrada Familia,” says Pálmadóttir. But the aesthetic output is not really the point; the architects’ goal is to galvanize architects today and spark an urgent discussion about the impact of climate change on our cities. She stresses the value of what can only be described as moonshot thinking. “I think it is important for architects not to be only in the present,” she told me. “Because if we are only in the present, working inside the system, we won’t change anything.” Pálmadóttir was born in 1972 in Húsavik, a town known as the whale-watching capital of Iceland. But she was more interested in space and technology and spent a lot of time flying with her father, a construction engineer who owned a small plane. She credits his job for the curiosity she developed about science and “how things were put together”—an inclination that proved useful later, when she started researching volcanoes. So was the fact that Icelanders “learn to live with volcanoes from birth.” At 21, she moved to Norway, where she spent seven years working in 3D visualization before returning to Reykjavik and enrolling in an architecture program at the Iceland University of the Arts. But things didn’t click until she moved to Barcelona for a master’s degree at the Institute for Advanced Architecture of Catalonia. “I remember being there and feeling, finally, like I was in the exact right place,” she says.  Before, architecture had seemed like a commodity and architects like “slaves to investment companies,” she says. Now, it felt like a path with potential.  COURTESY OF S.AP ARKITEKTAR COURTESY OF S.AP ARKITEKTAR COURTESY OF S.AP ARKITEKTAR COURTESY OF S.AP ARKITEKTAR Lava has proved to be a strong, durable building material, at least in its solid state. To explore its potential, Pálmadóttir and Skarphéðinsson envision a city built on a network of trenches that have filled with lava over the course of several eruptions, while buildings are constructed with lava bricks. She returned to Reykjavik in 2009 and worked as an architect until she founded S.AP (for “studio Arnhildur Pálmadóttir”) Arkitektar in 2018; her son started working with her in 2019 and officially joined her as an architect this year, after graduating from the Southern California Institute of Architecture.  In 2021, the pair witnessed their first eruption up close, near the Fagradalsfjall volcano on the Reykjanes Peninsula. It was there that Pálmadóttir became aware of the sheer quantity of material coursing through the planet’s veins, and the potential to divert it into channels.  Lava has already proved to be a strong, long-lasting building material—at least in its solid state. When it cools, it solidifies into volcanic rock like basalt or rhyolite. The type of rock depends on the composition of the lava, but basaltic lava—like the kind found in Iceland and Hawaii—forms one of the hardest rocks on Earth, which means that structures built from this type of lava would be durable and resilient.  For years, architects in Mexico, Iceland, and Hawaii (where lava is widely available) have built structures out of volcanic rock. But quarrying that rock is an energy-intensive process that requires heavy machines to extract, cut, and haul it, often across long distances, leaving a big carbon footprint. Harnessing lava in its molten state, however, could unlock new methods for sustainable construction. Jeffrey Karson, a professor emeritus at Syracuse University who specializes in volcanic activity and who cofounded the Syracuse University Lava Project, agrees that lava is abundant enough to warrant interest as a building material. To understand how it behaves, Karson has spent the past 15 years performing over a thousand controlled lava pours from giant furnaces. If we figure out how to build up its strength as it cools, he says, “that stuff has a lot of potential.”  In his research, Karson found that inserting metal rods into the lava flow helps reduce the kind of uneven cooling that would lead to thermal cracking—and therefore makes the material stronger (a bit like rebar in concrete). Like glass and other molten materials, lava behaves differently depending on how fast it cools. When glass or lava cools slowly, crystals start forming, strengthening the material. Replicating this process—perhaps in a kiln—could slow down the rate of cooling and let the lava become stronger. This kind of controlled cooling is “easy to do on small things like bricks,” says Karson, so “it’s not impossible to make a wall.”  Pálmadóttir is clear-eyed about the challenges before her. She knows the techniques she and Skarphéðinsson are exploring may not lead to anything tangible in their lifetimes, but they still believe that the ripple effect the projects could create in the architecture community is worth pursuing. Both Karson and Pedersen caution that more experiments are necessary to study this material’s potential. For Skarphéðinsson, that potential transcends the building industry. More than 12 years ago, Icelanders voted that the island’s natural resources, like its volcanoes and fishing waters, should be declared national property. That means any city built from lava flowing out of these volcanoes would be controlled not by deep-pocketed individuals or companies, but by the nation itself. (The referendum was considered illegal almost as soon as it was approved by voters and has since stalled.)  For Skarphéðinsson, the Lavaforming project is less about the material than about the “political implications that get brought to the surface with this material.” “That is the change I want to see in the world,” he says. “It could force us to make radical changes and be a catalyst for something”—perhaps a social megalopolis where citizens have more say in how resources are used and profits are shared more evenly. Cynics might dismiss the idea of harnessing lava as pure folly. But the more I spoke with Pálmadóttir, the more convinced I became. It wouldn’t be the first time in modern history that a seemingly dangerous idea (for example, drilling into scalding pockets of underground hot springs) proved revolutionary. Once entirely dependent on oil, Iceland today obtains 85% of its electricity and heat from renewable sources. “[My friends] probably think I’m pretty crazy, but they think maybe we could be clever geniuses,” she told me with a laugh. Maybe she is a little bit of both. Elissaveta M. Brandon is a regular contributor to Fast Company and Wired.

Arnhildur Pálmadóttir was around three years old when she saw a red sky from her living room window. A volcano was erupting about 25 miles away from where she lived on the northeastern coast of Iceland. Though it posed no immediate threat, its ominous presence seeped into her subconscious, populating her dreams with streaks of light in the night sky.

Fifty years later, these “gloomy, strange dreams,” as Pálmadóttir now describes them, have led to a career as an architect with an extraordinary mission: to harness molten lava and build cities out of it.

Pálmadóttir today lives in Reykjavik, where she runs her own architecture studio, S.AP Arkitektar, and the Icelandic branch of the Danish architecture company Lendager, which specializes in reusing building materials.

The architect believes the lava that flows from a single eruption could yield enough building material to lay the foundations of an entire city. She has been researching this possibility for more than five years as part of a project she calls Lavaforming. Together with her son and colleague Arnar Skarphéðinsson, she has identified three potential techniques: drill straight into magma pockets and extract the lava; channel molten lava into pre-dug trenches that could form a city’s foundations; or 3D-print bricks from molten lava in a technique similar to the way objects can be printed out of molten glass.

Pálmadóttir and Skarphéðinsson first presented the concept during a talk at Reykjavik’s DesignMarch festival in 2022. This year they are producing a speculative film set in 2150, in an imaginary city called Eldborg. Their film, titled Lavaforming, follows the lives of Eldborg’s residents and looks back on how they learned to use molten lava as a building material. It will be presented at the Venice Biennale, a leading architecture festival, in May. 

lava around a structure
Set in 2150, her speculative film Lavaforming presents a fictional city built from molten lava.
COURTESY OF S.AP ARKITEKTAR

Buildings and construction materials like concrete and steel currently contribute a staggering 37% of the world’s annual carbon dioxide emissions. Many architects are advocating for the use of natural or preexisting materials, but mixing earth and water into a mold is one thing; tinkering with 2,000 °F lava is another. 

Still, Pálmadóttir is piggybacking on research already being done in Iceland, which has 30 active volcanoes. Since 2021, eruptions have intensified in the Reykjanes Peninsula, which is close to the capital and to tourist hot spots like the Blue Lagoon. In 2024 alone, there were six volcanic eruptions in that area. This frequency has given volcanologists opportunities to study how lava behaves after a volcano erupts. “We try to follow this beast,” says Gro Birkefeldt M. Pedersen, a volcanologist at the Icelandic Meteorological Office (IMO), who has consulted with Pálmadóttir on a few occasions. “There is so much going on, and we’re just trying to catch up and be prepared.”

Pálmadóttir’s concept assumes that many years from now, volcanologists will be able to forecast lava flow accurately enough for cities to plan on using it in building. They will know when and where to dig trenches so that when a volcano erupts, the lava will flow into them and solidify into either walls or foundations.

Today, forecasting lava flows is a complex science that requires remote sensing technology and tremendous amounts of computational power to run simulations on supercomputers. The IMO typically runs two simulations for every new eruption—one based on data from previous eruptions, and another based on additional data acquired shortly after the eruption (from various sources like specially outfitted planes). With every event, the team accumulates more data, which makes the simulations of lava flow more accurate. Pedersen says there is much research yet to be done, but she expects “a lot of advancement” in the next 10 years or so. 

To design the speculative city of Eldborg for their film, Pálmadóttir and Skarphéðinsson used 3D-modeling software similar to what Pedersen uses for her simulations. The city is primarily built on a network of trenches that were filled with lava over the course of several eruptions, while buildings are constructed out of lava bricks. “We’re going to let nature design the buildings that will pop up,” says Pálmadóttir. 

The aesthetic of the city they envision will be less modernist and more fantastical—a bit “like [Gaudi’s] Sagrada Familia,” says Pálmadóttir. But the aesthetic output is not really the point; the architects’ goal is to galvanize architects today and spark an urgent discussion about the impact of climate change on our cities. She stresses the value of what can only be described as moonshot thinking. “I think it is important for architects not to be only in the present,” she told me. “Because if we are only in the present, working inside the system, we won’t change anything.”

Pálmadóttir was born in 1972 in Húsavik, a town known as the whale-watching capital of Iceland. But she was more interested in space and technology and spent a lot of time flying with her father, a construction engineer who owned a small plane. She credits his job for the curiosity she developed about science and “how things were put together”—an inclination that proved useful later, when she started researching volcanoes. So was the fact that Icelanders “learn to live with volcanoes from birth.” At 21, she moved to Norway, where she spent seven years working in 3D visualization before returning to Reykjavik and enrolling in an architecture program at the Iceland University of the Arts. But things didn’t click until she moved to Barcelona for a master’s degree at the Institute for Advanced Architecture of Catalonia. “I remember being there and feeling, finally, like I was in the exact right place,” she says. 

Before, architecture had seemed like a commodity and architects like “slaves to investment companies,” she says. Now, it felt like a path with potential. 

COURTESY OF S.AP ARKITEKTAR

COURTESY OF S.AP ARKITEKTAR

COURTESY OF S.AP ARKITEKTAR

COURTESY OF S.AP ARKITEKTAR

Lava has proved to be a strong, durable building material, at least in its solid state. To explore its potential, Pálmadóttir and Skarphéðinsson envision a city built on a network of trenches that have filled with lava over the course of several eruptions, while buildings are constructed with lava bricks.

She returned to Reykjavik in 2009 and worked as an architect until she founded S.AP (for “studio Arnhildur Pálmadóttir”) Arkitektar in 2018; her son started working with her in 2019 and officially joined her as an architect this year, after graduating from the Southern California Institute of Architecture. 

In 2021, the pair witnessed their first eruption up close, near the Fagradalsfjall volcano on the Reykjanes Peninsula. It was there that Pálmadóttir became aware of the sheer quantity of material coursing through the planet’s veins, and the potential to divert it into channels. 

Lava has already proved to be a strong, long-lasting building material—at least in its solid state. When it cools, it solidifies into volcanic rock like basalt or rhyolite. The type of rock depends on the composition of the lava, but basaltic lava—like the kind found in Iceland and Hawaii—forms one of the hardest rocks on Earth, which means that structures built from this type of lava would be durable and resilient. 

For years, architects in Mexico, Iceland, and Hawaii (where lava is widely available) have built structures out of volcanic rock. But quarrying that rock is an energy-intensive process that requires heavy machines to extract, cut, and haul it, often across long distances, leaving a big carbon footprint. Harnessing lava in its molten state, however, could unlock new methods for sustainable construction. Jeffrey Karson, a professor emeritus at Syracuse University who specializes in volcanic activity and who cofounded the Syracuse University Lava Project, agrees that lava is abundant enough to warrant interest as a building material. To understand how it behaves, Karson has spent the past 15 years performing over a thousand controlled lava pours from giant furnaces. If we figure out how to build up its strength as it cools, he says, “that stuff has a lot of potential.” 

In his research, Karson found that inserting metal rods into the lava flow helps reduce the kind of uneven cooling that would lead to thermal cracking—and therefore makes the material stronger (a bit like rebar in concrete). Like glass and other molten materials, lava behaves differently depending on how fast it cools. When glass or lava cools slowly, crystals start forming, strengthening the material. Replicating this process—perhaps in a kiln—could slow down the rate of cooling and let the lava become stronger. This kind of controlled cooling is “easy to do on small things like bricks,” says Karson, so “it’s not impossible to make a wall.” 

Pálmadóttir is clear-eyed about the challenges before her. She knows the techniques she and Skarphéðinsson are exploring may not lead to anything tangible in their lifetimes, but they still believe that the ripple effect the projects could create in the architecture community is worth pursuing.

Both Karson and Pedersen caution that more experiments are necessary to study this material’s potential. For Skarphéðinsson, that potential transcends the building industry. More than 12 years ago, Icelanders voted that the island’s natural resources, like its volcanoes and fishing waters, should be declared national property. That means any city built from lava flowing out of these volcanoes would be controlled not by deep-pocketed individuals or companies, but by the nation itself. (The referendum was considered illegal almost as soon as it was approved by voters and has since stalled.) 

For Skarphéðinsson, the Lavaforming project is less about the material than about the “political implications that get brought to the surface with this material.” “That is the change I want to see in the world,” he says. “It could force us to make radical changes and be a catalyst for something”—perhaps a social megalopolis where citizens have more say in how resources are used and profits are shared more evenly.

Cynics might dismiss the idea of harnessing lava as pure folly. But the more I spoke with Pálmadóttir, the more convinced I became. It wouldn’t be the first time in modern history that a seemingly dangerous idea (for example, drilling into scalding pockets of underground hot springs) proved revolutionary. Once entirely dependent on oil, Iceland today obtains 85% of its electricity and heat from renewable sources. “[My friends] probably think I’m pretty crazy, but they think maybe we could be clever geniuses,” she told me with a laugh. Maybe she is a little bit of both.

Elissaveta M. Brandon is a regular contributor to Fast Company and Wired.

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Intel sells off majority stake in its FPGA business

Altera will continue offering field-programmable gate array (FPGA) products across a wide range of use cases, including automotive, communications, data centers, embedded systems, industrial, and aerospace.  “People were a bit surprised at Intel’s sale of the majority stake in Altera, but they shouldn’t have been. Lip-Bu indicated that shoring up Intel’s balance sheet was important,” said Jim McGregor, chief analyst with Tirias Research. The Altera has been in the works for a while and is a relic of past mistakes by Intel to try to acquire its way into AI, whether it was through FPGAs or other accelerators like Habana or Nervana, note Anshel Sag, principal analyst with Moor Insight and Research. “Ultimately, the 50% haircut on the valuation of Altera is unfortunate, but again is a demonstration of Intel’s past mistakes. I do believe that finishing the process of spinning it out does give Intel back some capital and narrows the company’s focus,” he said. So where did it go wrong? It wasn’t with FPGAs because AMD is making a good run of it with its Xilinx acquisition. The fault, analysts say, lies with Intel, which has a terrible track record when it comes to acquisitions. “Altera could have been a great asset to Intel, just as Xilinx has become a valuable asset to AMD. However, like most of its acquisitions, Intel did not manage Altera well,” said McGregor.

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Intelligence at the edge opens up more risks: how unified SASE can solve it

In an increasingly mobile and modern workforce, smart technologies such as AI-driven edge solutions and the Internet of Things (IoT) can help enterprises improve productivity and efficiency—whether to address operational roadblocks or respond faster to market demands. However, new solutions also come with new challenges, mainly in cybersecurity. The decentralized nature of edge computing—where data is processed, transmitted, and secured closer to the source rather than in a data center—has presented new risks for businesses and their everyday operations. This shift to the edge increases the number of exposed endpoints and creates new vulnerabilities as the attack surface expands. Enterprises will need to ensure their security is watertight in today’s threat landscape if they want to reap the full benefits of smart technologies at the edge. Bypassing the limitations of traditional network security  For the longest time, enterprises have relied on traditional network security approaches to protect their edge solutions. However, these methods are becoming increasingly insufficient as they typically rely on static rules and assumptions, making them inflexible and predictable for malicious actors to circumvent.  While effective in centralized infrastructures like data centers, traditional network security models fall short when applied to the distributed nature of edge computing. Instead, organizations need to adopt more adaptive, decentralized, and intelligent security frameworks built with edge deployments in mind.  Traditional network security typically focuses on keeping out external threats. But today’s threat landscape has evolved significantly, with threat actors leveraging AI to launch advanced attacks such as genAI-driven phishing, sophisticated social engineering attacks, and malicious GPTs. Combined with the lack of visibility with traditional network security, a cybersecurity breach could remain undetected until it’s too late, resulting in consequences extending far beyond IT infrastructures.  Next generation of enterprise security with SASE As organizations look into implementing new technologies to spearhead their business, they

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Keysight tools tackle data center deployment efficiency

Test and performance measurement vendor Keysight Technologies has developed Keysight Artificial Intelligence (KAI) to identify performance inhibitors affecting large GPU deployments. It emulates workload profiles, rather than using actual resources, to pinpoint performance bottlenecks. Scaling AI data centers requires testing throughout the design and build process – every chip, cable, interconnect, switch, server, and GPU needs to be validated, Keysight says. From the physical layer through the application layer, KAI is designed to identify weak links that degrade the performance of AI data centers, and it validates and optimizes system-level performance for optimal scaling and throughput. AI providers, semiconductor fabricators, and network equipment manufacturers can use KAI to accelerate design, development, deployment, and operations by pinpointing performance issues before deploying in production.

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U.S. Advances AI Data Center Push with RFI for Infrastructure on DOE Lands

ORNL is also the home of the Center for Artificial Intelligence Security Research (CAISER), which Edmon Begoli, CAISER founding director, described as being in place to build the security necessary by defining a new field of AI research targeted at fighting future AI security risks. Also, at the end of 2024, Google partner Kairos Power started construction of their Hermes demonstration SMR in Oak Ridge. Hermes is a high-temperature gas-cooled reactor (HTGR) that uses triso-fueled pebbles and a molten fluoride salt coolant (specifically Flibe, a mix of lithium fluoride and beryllium fluoride). This demonstration reactor is expected to be online by 2027, with a production level system becoming available in the 2030 timeframe. Also located in a remote area of Oak Ridge is the Tennessee Valley Clinch River project, where the TVA announced a signed agreement with GE-Hitachi to plan and license a BWRX-300 small modular reactor (SMR). On Integrating AI and Energy Production The foregoing are just examples of ongoing projects at the sites named by the DOE’s RFI. Presuming that additional industry power, utility, and data center providers get on board with these locations, any of the 16 could be the future home of AI data centers and on-site power generation. The RFI marks a pivotal step in the U.S. government’s strategy to solidify its global dominance in AI development and energy innovation. By leveraging the vast resources and infrastructure of its national labs and research sites, the DOE is positioning the country to meet the enormous power and security demands of next-generation AI technologies. The selected locations, already home to critical energy research and cutting-edge supercomputing, present a compelling opportunity for industry stakeholders to collaborate on building integrated, sustainable AI data centers with dedicated energy production capabilities. With projects like Oak Ridge’s pioneering SMRs and advanced AI security

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Generac Sharpens Focus on Data Center Power with Scalable Diesel and Natural Gas Generators

In a digital economy defined by constant uptime and explosive compute demand, power reliability is more than a design criterion—it’s a strategic imperative. In response to such demand, Generac Power Systems, a company long associated with residential backup and industrial emergency power, is making an assertive move into the heart of the digital infrastructure sector with a new portfolio of high-capacity generators engineered for the data center market. Unveiled this week, Generac’s new lineup includes five generators ranging from 2.25 MW to 3.25 MW. These units are available in both diesel and natural gas configurations, and form part of a broader suite of multi-asset energy systems tailored to hyperscale, colocation, enterprise, and edge environments. The product introductions expand Generac’s commercial and industrial capabilities, building on decades of experience with mission-critical power in hospitals, telecom, and manufacturing, now optimized for the scale and complexity of modern data centers. “Coupled with our expertise in designing generators specific to a wide variety of industries and uses, this new line of generators is designed to meet the most rigorous standards for performance, packaging, and after-treatment specific to the data center market,” said Ricardo Navarro, SVP & GM, Global Telecom and Data Centers, Generac. Engineering for the Demands of Digital Infrastructure Each of the five new generators is designed for seamless integration into complex energy ecosystems. Generac is emphasizing modularity, emissions compliance, and high-ambient operability as central to the offering, reflecting a deep understanding of the real-world challenges facing data center operators today. The systems are built around the Baudouin M55 engine platform, which is engineered for fast transient response and high operating temperatures—key for data center loads that swing sharply under AI and cloud workloads. The M55’s high-pressure common rail fuel system supports low NOx emissions and Tier 4 readiness, aligning with the most

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CoolIT and Accelsius Push Data Center Liquid Cooling Limits Amid Soaring Rack Densities

The CHx1500’s construction reflects CoolIT’s 24 years of DLC experience, using stainless-steel piping and high-grade wetted materials to meet the rigors of enterprise and hyperscale data centers. It’s also designed to scale: not just for today’s most power-hungry processors, but for future platforms expected to surpass today’s limits. Now available for global orders, CoolIT is offering full lifecycle support in over 75 countries, including system design, installation, CDU-to-server certification, and maintenance services—critical ingredients as liquid cooling shifts from high-performance niche to a requirement for AI infrastructure at scale. Capex Follows Thermals: Dell’Oro Forecast Signals Surge In Cooling and Rack Power Infrastructure Between Accelsius and CoolIT, the message is clear: direct liquid cooling is stepping into its maturity phase, with products engineered not just for performance, but for mass deployment. Still, technology alone doesn’t determine the pace of adoption. The surge in thermal innovation from Accelsius and CoolIT isn’t happening in a vacuum. As the capital demands of AI infrastructure rise, the industry is turning a sharper eye toward how data center operators account for, prioritize, and report their AI-driven investments. To wit: According to new market data from Dell’Oro Group, the transition toward high-power, high-density AI racks is now translating into long-term investment shifts across the data center physical layer. Dell’Oro has raised its forecast for the Data Center Physical Infrastructure (DCPI) market, predicting a 14% CAGR through 2029, with total revenue reaching $61 billion. That revision stems from stronger-than-expected 2024 results, particularly in the adoption of accelerated computing by both Tier 1 and Tier 2 cloud service providers. The research firm cited three catalysts for the upward adjustment: Accelerated server shipments outpaced expectations. Demand for high-power infrastructure is spreading to smaller hyperscalers and regional clouds. Governments and Tier 1 telecoms are joining the buildout effort, reinforcing AI as a

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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