Before the emergence of generative AI, a primary business model for the data center industry involved colocation data centers that support hundreds of customers running different applications at the same time.
The explosive growth of Gen AI, as well as the voracious appetite of AI data-processing servers for electricity, is ushering in the advent of small "AI factories" that are roughly the size of a McDonald's fast-food outlet.
Jensen Huang, CEO of AI chipmaker Nvidia, said during a recent earnings call that this new class of data centers is aiming to serve a single customer running a handful, or even just one, AI application, Data Center Knowledge reported.
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