A New Data Center Industry Playbook: Practical Guidance For Operators To Thrive In The AI Age

Steven Carlini, Chief Advocate, Data Centers and AI, Energy Management Business Unit, Schneider Electric.

​After a loss, many athletes leave the field saying their performance was unacceptable, that they need to “do better.” As a sports fan, I agree with these assessments and believe the same guidance can be applied to the data center industry, which finds itself front and center in national and global debates.​

The world is evolving with AI, and the data centers that power it need to adapt to the changing world. In my opinion, the data center playbook from last decade will not be successful going forward. The industry must “do better.”​

Here are my suggestions for the new data center industry playbook.​

Data Centers Must Be Transparent And Give Back To The Community

Today, utility power is a main headwind for data center projects. While utilities are eager and willing to expand, they have to mitigate risks of overbuilding like they did for the dot-com era. Yes, we have seen this movie before at the turn of the century. Data center construction completely stopped for a few years, waiting for the internet applications and demand to catch up. Utilities were left with overcapacity for years and a bitter taste for data centers.

For data center operators to move faster today, they need better transparency (no more non-disclosure agreements), accuracy (only request power they really intend to use) and direct funding for power projects or preset use contracts where they are committed to pay for power use for a predetermined period of time.

In essence, data center operators need to give to the local communities and not be a burden. Keeping power prices low in the areas they build while keeping away from the local water supply will help accomplish this goal.​