The pace of change around server technology is advancing considerably, driven by hyperscalers but spilling over into the on-premises world as well. There are numerous overall trends, experts say, including: AI Everything: AI mania is everywhere and without high power hardware to run it, it’s just vapor. But it’s more than just a buzzword, it is a very real and measurable trend. AI servers are notable because they are decked out with high end CPUs, GPU accelerators, and oftentimes a SmartNIC network controller.  All the major players — Nvidia, Supermicro, Google, Asus, Dell, Intel, HPE — as well as smaller vendors are offering purpose-built AI hardware, according to a recent Network World article. AI edge server growth: There is also a trend towards deploying AI edge servers. The Global Edge AI Servers Market size is expected to be worth around $26.6 Billion by 2034, from $2.7 Billion in 2024, according to a Market.US report. Considerable amounts of data are collected on the edge.  Edge servers do the job of culling the useless data and sending only the necessary data back to data centers for processing. The market is rapidly expanding as industries such as manufacturing, automotive, healthcare, and retail increasingly deploy IoT devices and require immediate data processing for decision-making and operational efficiency, according to the report. Liquid cooling gains ground: Liquid cooling is inching its way in from the fringes into the mainstream of data center infrastructure. What was once a difficult add-on is now becoming a standard feature, says Jeffrey Hewitt, vice president and analyst with Gartner. “Server providers are working on developing the internal chassis plumbing for direct-to-chip cooling with the goal of supporting the next generation of AI CPUs and GPUs that will produce high amounts of heat within their servers,” he said.  New data center structures: Not

The growth comes despite considerable headwinds facing data center operators, including higher construction costs, equipment pricing, and persistent shortages in critical materials like generators, chillers and transformers, CRBE stated. There is a considerable pricing disparity between newly built data centers and legacy facilities, reflecting the premium placed on modern, energy-efficient infrastructure. Specifically, liquid/immersion cooling is preferred over air cooling for modern server requirements, CRBE found. On the networking side of things, major telecom companies made substantial investments in fiber in the second half of 2024, reflecting the growing need for more network infrastructure and capacity to accommodate growing demand from AI and data providers. There have also been many notable deals recently: AT&T’s multi-year, $1 billion agreement with Corning to provide next-generation fiber, cable and connectivity solutions; Comcast’s proposed acquisition of Nitel; Verizon’s agreement to acquire Frontier, the largest pure-play fiber internet provider in the U.S.; and T-Mobile’s entry into the fiber internet market via partnerships with fiber-optic providers. In the quarter, Meta announced plans for a 25,000-mile undersea fiber cable that would connect the U.S. East and West coasts with global markets across the Atlantic, Indian and Pacific oceans. The project would mark the first privately owned and operated global fiber cable network. Data Center Outlook

Goldman Sachs Research estimates the power usage by the global data center market to be around 55 gigawatts, which breaks down as 54% for cloud computing workloads, 32% for traditional line of business workloads and 14% for AI. By 2027, that number jumps to 84 GW, with AI growing to 27% of the overall market, cloud dropping to 50%, and traditional workloads falling to 23%, Schneider stated. Goldman Sachs Research estimates that there will be around 122 GW of data center capacity online by the end of 2030, and the density of power use in data centers is likely to grow as well, from 162 kilowatts per square foot to 176 KW per square foot in 2027, thanks to AI, Schneider stated.  “Data center supply — specifically the rate at which incremental supply is built — has been constrained over the past 18 months,” Schneider wrote. These constraints have arisen from the inability of utilities to expand transmission capacity because of permitting delays, supply chain bottlenecks, and infrastructure that is both costly and time-intensive to upgrade. The result is that due to power demand from data centers, there will need to be additional utility investment, to the tune of about $720 billion of grid spending through 2030. And then they are subject to the pace of public utilities, which move much slower than hyperscalers. “These transmission projects can take several years to permit, and then several more to build, creating another potential bottleneck for data center growth if the regions are not proactive about this given the lead time,” Schneider wrote.

Organization: Hitachi Vantara Skills acquired: Knowledge of data center infrastructure management tasks automation using Hitachi Ops Center Automator. Price: $100 Exam duration: 60 minutes How to prepare: Knowledge of all storage-related operations from an end-user perspective, including planning, allocating, and managing storage and architecting storage layouts. Read more about Hitachi Vantara’s training and certification options here. Certifications that bundle cloud, networking and storage skills AWS Certified Solutions Architect – Professional The AWS Certified Solutions Architect – Professional certification from leading cloud provider Amazon Web Services (AWS) helps individuals showcase advanced knowledge and skills in optimizing security, cost, and performance, and automating manual processes. The certification is a means for organizations to identify and develop talent with these skills for implementing cloud initiatives, according to AWS. The ideal candidate has the ability to evaluate cloud application requirements, make architectural recommendations for deployment of applications on AWS, and provide expert guidance on architectural design across multiple applications and projects within a complex organization, AWS says. Certified individuals report increased credibility with technical colleagues and customers as a result of earning this certification, it says. Organization: Amazon Web Services Skills acquired: Helps individuals showcase skills in optimizing security, cost, and performance, and automating manual processes Price: $300 Exam duration: 180 minutes How to prepare: The recommended experience prior to taking the exam is two or more years of experience in using AWS services to design and implement cloud solutions Cisco Certified Internetwork Expert (CCIE) Data Center The Cisco CCIE Data Center certification enables individuals to demonstrate advanced skills to plan, design, deploy, operate, and optimize complex data center networks. They will gain comprehensive expertise in orchestrating data center infrastructure, focusing on seamless integration of networking, compute, and storage components. Other skills gained include building scalable, low-latency, high-performance networks that are optimized to support artificial intelligence (AI)

Netskope is expanding its global presence by adding multiple regions to its NewEdge carrier-grade infrastructure, which now includes more than 75 locations to ensure processing remains close to end users. The secure access service edge (SASE) provider also enhanced its digital experience monitoring (DEM) capabilities with AI-powered root-cause analysis and automated network diagnostics. “We are announcing continued expansion of our infrastructure and our continued focus on resilience. I’m a believer that nothing gets adopted if end users don’t have a great experience,” says Netskope CEO Sanjay Beri. “We monitor traffic, we have multiple carriers in every one of our more than 75 regions, and when traffic goes from us to that destination, the path is direct.” Netskope added regions including data centers in Calgary, Helsinki, Lisbon, and Prague as well as expanded existing NewEdge regions including data centers in Bogota, Jeddah, Osaka, and New York City. Each data center offers customers a range of SASE capabilities including cloud firewalls, secure web gateway (SWG), inline cloud access security broker (CASB), zero trust network access (ZTNA), SD-WAN, secure service edge (SSE), and threat protection. The additional locations enable Netskope to provide coverage for more than 220 countries and territories with 200 NewEdge Localization Zones, which deliver a local direct-to-net digital experience for users, the company says.

The latest episode of the DCF Show podcast delves into one of the most pressing challenges facing the data center industry today: the search for sustainable, high-density power solutions. And how, as hyperscale operators like Google and Meta contend with growing energy demands—and, in some cases, resistance from utilities unwilling or unable to support their expanding footprints—the conversation around nuclear energy has intensified.  Both legacy nuclear providers and innovative startups are racing to secure the future business of data center giants, each bringing unique approaches to the table. Our guest for this podcast episode is Matt Loszak, co-founder and CEO of Aalo Atomics, an Austin-based company that’s taking a fresh approach to nuclear energy. Aalo, which secured a $29.5 million Series A funding round in 2024, stands out in the nuclear sector with its 10-megawatt sodium-cooled reactor design—eliminating the need for water, a critical advantage for siting flexibility. Inspired by the Department of Energy’s MARVEL microreactor, Aalo’s technology benefits from direct expertise, as the company’s CTO was the chief architect behind MARVEL. Beyond reactor design, Aalo’s vision extends to full-scale modular plant production. Instead of just building reactors, the company aims to manufacture entire nuclear plants using prefabricated, LEGO-style components. The fully modular plants, shipped in standard containers, are designed to match the footprint of a data center while requiring no onsite water—features that could make them particularly attractive to hyperscale operators seeking localized, high-density power.  Aalo has already made significant strides, with the Department of Energy identifying land at Idaho National Laboratory (INL) as a potential site for its first nuclear facility. The company is on an accelerated timeline, expecting to complete a non-nuclear prototype within three months and break ground on its first nuclear reactor in about a year—remarkably fast progress for the nuclear industry. In our discussion,