Artificial intelligence may seem entirely digital. Yet behind every model lies a physical ecosystem of data centres, power grids and telecommunications networks that makes it possible to process, power and transfer ever-growing volumes of data.
Yago Barandiaran, an AI expert at DOMINION, explores the physical infrastructure that will shape the future development of this technology.
Data centres: the physical backbone of AI
The development of increasingly complex models is accelerating the need for greater processing and storage capacity. This has made data centres a critical part of the infrastructure required for AI to grow.
The challenge is not simply to build more facilities. We also need data centres that are efficient, resilient and ready to meet technological demands that continue to evolve rapidly.
Their design and operation must address energy availability, cooling, connectivity, security and scalability as interconnected challenges, while also reducing their environmental impact.
Energy: generating more will not be enough
The expansion of AI is increasing electricity demand and placing additional pressure on energy systems that are already responding to the electrification of industry, mobility and other sectors of the economy.
The solution is not simply to generate more power. We also need to modernise electricity grids, expand their capacity, integrate renewable generation and develop energy storage solutions that improve the balance between supply and demand.
Data centres require a stable and continuous power supply. Their growth must therefore go hand in hand with the development of more flexible, intelligent and resilient grids.
Connectivity for an ever-growing volume of data
Beyond energy, AI requires connectivity infrastructure capable of bringing computing capacity closer to where it is needed and moving increasing volumes of data quickly and efficiently.
This will require a combination of high-capacity fibre-optic networks connecting different data centres and stronger distribution networks supported by fibre, 5G and satellite connectivity.
Processing speed is essential, but so is the ability to transfer information securely, reliably and with the lowest possible latency.
From an investor’s perspective, the challenge lies in identifying where the best investment opportunities will be found amongst all the players in the value chain involved in the creation of this physical infrastructure.
Yago Barandiaran
| Risk, Compliance, IA and Sustainability Director
Three infrastructures, one shared challenge
Computing, energy and connectivity are not separate challenges. They form part of the same system and must evolve together to prevent limitations in one area from slowing the growth of the whole ecosystem.
The race to develop artificial intelligence will not be decided by software alone. It will also depend on our ability to build the infrastructure needed to turn its potential into real, scalable and sustainable applications.
Adapted from an article originally published in Estrategias de Inversión.
Read the original article in Investment Strategies
