Data center backlash could slow CIOs’ AI plans
“Demand for AI compute is accelerating, so constraining the supply of facilities, electricity and high-density capacity will place upward pressure on cloud pricing, colocation, accelerator access, and long-term capacity contracts,” he adds.
Organizations that have the capacity will should be able to protect themselves through multiyear agreements and dedicated infrastructure, he suggests. Smaller organizations, startups, and universities could face the greatest percentage increases and may simply be priced out of leading-edge AI capabilities, he adds.
Therefore, Surace advises CIOs to treat compute and energy as strategic supply-chain risks. Organizations should secure capacity as soon as they can, avoid dependence on one cloud or one geographic region, and use smaller and more efficient AI models where appropriate, he recommends.
