March 5, 2025 - Crowne Plaza Atlanta
by Jake Ring, PDM Co-founder and President
Aside from Atlanta’s challenging morning traffic, much of the discussion focused on the challenge to keep up with the exponential growth in energy demand created by the AI power grab, which was the Keynote Panel topic. Panelists provided insights on what is needed to build data centers in today’s dynamic environment and get-to-market fast. Some takeaways:
Keynote Session
Mind the Gap. The serious gap in availability of skilled service providers, especially in trades like electricians, needs to be fixed within high school education. Encouraging and educating students about the opportunity.
Terrible Tariffs. On the issue of tariffs, which is hitting everyone where it hursts the most, the need to prepare, prepare, prepare. Recommendations included:
Flex and Stretch. Building in contract flexibility and having a solid change order process in place is key.
Pick your Partners. Choose collaborators based on their ability to execute.
Plan A, Plan B. Build in contingency plans at every turn, especially for uncertainties relating to the impact of tariffs, and product pricing.
Let’s be Crystal Clear. Be transparent with customers to set expectations. No surprises are the best surprise.
Session: Building for the AI Revolution: Adapting Data Center Design and Delivery for Mega Campuses
PDM’s panel session for the Atlanta event included the following: Jake Ring, President, PDM – Power and Data Management; Kurt Lindorfer, Founding Principal, PARADIGM Structural Engineers; Brian Marcuzzo, Senior TPM, Network Deployment, Google; Joseph McLeod, Design Manager, Eastern Region, Digital Realty Trust; Robbie Sovie, EVP, Construction & Development, T5 Data Centers; Matt Torma, Director, Mission Critical, XYZ Reality; Jennifer Toeppner, Data Center Lead, Sales & Business Development, Metromont
AI is the ‘word’
AI is definitely the buzz word right now in the data center. So it was no surprise that this session was SRO. The panel’s discussion focused on the critical need for high-density, high-capacity cooling and power in data centers, with rack power densities ranging from 75 to 150 kilowatts per rack. Liquid-to-chip cooling is essential due to the high power consumption of modern AI chips. The data center industry is moving towards self-generation of power due to grid limitations.
High-density builds, including AI mega campuses, are dominating, with 60% of new builds being high-density. Challenges include water usage, site preparation, and lead times for critical components like transformers and chillers. Modularity and operational excellence are key to meeting tight deadlines.
Industry Challenges
The panelists discussed several challenges facing the industry that require strategic solutions to enhance efficiency and meet growing demands. A key area for improvement is generally accepted adoption of standardized design approaches, which can significantly accelerate construction timelines. Additionally, there is a pressing need to enhance coordination between commissioning agents and installation contractors, as this can lead to reduced commissioning periods and smoother project completions.
Quality control and vendor oversight must be prioritized to minimize complications during the construction process, ensuring projects stay on track and within budget. Furthermore, the industry must address the skills gap by investing in comprehensive training and development programs for the labor force. By implementing these measures, the data center industry can streamline operations, improve project outcomes, and better position itself to meet the escalating demand.
Industry Shifts
The data center industry is experiencing a significant shift towards high-density builds, with 60% of new constructions focusing on increased power and cooling capacity. Advanced technologies necessitate more powerful and densely packed systems, pushing the boundaries of current traditional data center design and infrastructure. As a result, power and cooling have become major concerns, with rack densities rising from an average of 5-7 kW to 8-10 kW in recent years, and some AI-focused facilities reaching up to 50 kW per rack.
To address these challenges, innovative cooling solutions like direct liquid cooling are being implemented, although they often require substantial water usage. This approach is facing pushback from local jurisdictions concerned about water availability, prompting the industry to explore more sustainable alternatives such as immersion cooling.
The landscape of data center design is thus evolving, with a clear distinction emerging between high-density AI mega campuses and traditional colocation facilities, each requiring tailored approaches to power and cooling management.
The Hyper-scalers
Hyper-scale data centers, the backbone of this digital revolution, are pushing the boundaries of design and power requirements, with facilities consuming anywhere from 20 to 100+ MW of power. These massive projects present unique challenges, particularly in terms of power infrastructure and construction timelines. Developers are increasingly prioritizing guaranteed on-site power for hyperscale builds, recognizing that power availability is often the critical path in project completion.
Lead Times
The industry is grappling with extended lead times for power infrastructure, which can significantly delay mega data center development To address this, bridging power solutions are being implemented to get servers operational quickly, while longer-term transmission lines and transformers are being installed.
Quality Control
Quality control and competency levels within the industry are causing concerns, often leading to delays and cost overruns. To combat these issues, there’s a growing focus on implementing advanced technologies and processes to improve project management and reduce risks. Tight coordination between commissioning agents and installation contractors is proving crucial in saving both time and money.
Rack Density
The industry is also adapting to rising rack densities, which are pushing power requirements to new heights. Some AI-focused data centers are now seeing power densities of up to 50 kW per rack, compared to the 7 kW typical in conventional facilities. This shift is driving innovations in cooling technologies, with liquid cooling systems becoming more prevalent to manage the increased heat generation.
Conclusion
As the industry continues to grow, it must address labor force issues, competency concerns, and safety challenges. There’s a pressing need to find solutions that can unlock a 20% or greater increase in speed to market while improving construction efficiency and quality. The industry must remain adaptable to ongoing changes and emerging technologies to meet the ever-increasing demand for data center capacity.
Opening Remarks
AND…On the main stage to open the DICE event was PDM’s own Adeel Usman, VP of Sales & Marketing! Always nice to be front and center for the DICE events!
