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Juan Font is President and CEO of CoreSite and is providing insights on the current state of the technology industry, particularly focusing on the rapid deployment of Artificial Intelligence (AI) tools. The adoption of AI in critical business functions has increased significantly, with GenAI use doubling in the past year. This surge in AI deployment has led to a technological arms race among tech companies vying for chip supremacy, particularly in the realm of graphical processing units (GPUs). Enterprise leaders are facing challenges in obtaining the most powerful chips and the necessary infrastructure to support AI workflows, leading to a strained technology ecosystem.

One of the main challenges facing organizations in the current technology landscape is a shortage of power and data center capacity, driven primarily by the demand for GenAI tools. The increased power consumption of GPU chips used in AI training models is putting a strain on power grids in traditional data center hubs like Northern Virginia and Silicon Valley. This has led to a shift towards more geographically distributed data center architecture, with hyper-scalers developing campuses in new locations like Atlanta, Reno, and Charlotte to accommodate the growing demand for AI infrastructure.

The AI revolution is accelerating other demand-drivers within cloud platforms, leading to an unprecedented explosion of power-intensive workloads. Many companies are struggling to deploy infrastructure in their data centers that can support the power requirements of GPU chips, leading to increased outsourcing and pre-leasing of data center space. The supply shortage of infrastructure and equipment, such as generators and servers, is exacerbating the challenges faced by data center providers and enterprises trying to run power-intensive processes.

Organizational leaders must think strategically and plan further in advance than ever before to successfully deploy AI-driven services and products. The scramble for data center capacity, bottlenecks in supply chains, and constraints on energy and utilities mean that companies must contend with years-long wait times before the necessary resources are available. Planning for future interactions with customers, integral operations, data utilization, AI workloads, and infrastructure needs is crucial for companies to navigate the technology arms race and achieve digital transformation.

In conclusion, the exponential growth of AI tools and power-intensive workloads is reshaping the technological landscape, presenting both opportunities and challenges for organizations. The need for advanced planning, strategic foresight, and consideration of resource availability is paramount for companies looking to implement AI projects successfully. As the competition for chip supremacy and data center capacity continues to intensify, companies must adapt and innovate to keep pace with the evolving technology ecosystem.

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