AI-Ready Data Centers Are Poised for Fast Growth


Buoyed by rising demand for enterprise AI tools, CoreWeave secures a $2.3 billion debt facility to build data centers that can handle more intensive computer applications

Companies’ insatiable appetite for artificial intelligence is driving a fast-emerging market for data centers purpose built to handle compute-intensive AI applications.

As veteran enterprise cloud vendors race to retrofit existing data centers with advanced chips and other upgrades aimed at meeting demand for AI software, some upstart builders see an opening to develop new facilities from scratch, analysts say.

Data centers are the warehouse-like buildings equipped with multiple racks of servers, routers and other information-technology hardware that store and process data. Conventional data centers are typically outfitted with servers that run workloads with standard, general-purpose chips, said Manju Naglapur, senior vice president and general manager for cloud, applications and infrastructure solutions at IT services and consulting firm Unisys.