January 20, 2025 - What does Blackwell mean for the data center industry?

by Jake Ring, PDM Co-founder and President

NVIDIA’s Blackwell chip is making the data center industry’s head spin with its unprecedented electric power demands. In fact, only 5% of today’s existing data centers can currently support its requirements. But let’s take a closer look. 

Power consumption with Blackwell 

A single rack utilizing Blackwell systems can consume up to 160 kilowatts of power. On average, this is 3 times greater than the current consumption of previous chips on the market which can consume between 40-60 kilowatts of power. A massive increase in energy requirements, to say the least, which necessitates significant upgrades to power distribution infrastructure within data centers. 

Data centers’ growing appetite  

A quick look at annual U.S. data centers electricity consumption growth* over the past 10 years and estimated in the near future:  

     Years 
    CAGR 
2014 -2018 
 7% 
2018 – 2023 
18% 
2023 – 2028 
Up to 27% 
Too hot to handle? 

Plus, the extreme power density of Blackwell-equipped racks demands advanced cooling solutions, particularly direct-to-chip liquid cooling. This cooling system becomes a critical component of the power infrastructure, as even brief interruptions could lead to overheating and potential hardware damage. 

Implementation is key 

To support these new configurations, data centers must find a way to implement: 

  1. Enhanced power distribution systems capable of delivering 60-120 kW per rack. 
  2. Advanced liquid cooling solutions integrated into the critical power path. 
  3. Flexible power distribution methods to adapt to evolving high-density computing needs. 

These requirements present significant challenges, as a small percentage of the world’s data centers can currently support even 50 kW per rack. The Blackwell chip’s arrival is thus driving a rapid evolution in data center design and infrastructure, pushing the industry towards more efficient and powerful computing solutions. 

Let’s see how quickly industry players will respond. On your mark, get set…

2024 United States Data Center Energy Usage Report, December 2024, Berkely Labs, Energy Analysis and Environmental Division.

Read Next Blog Post