AI Demand Surge Leads Crypto Miners to Revamp Data Centers
A significant uptick in the demand for GPUs is prompting crypto miners to overhaul their data centers in response to the burgeoning needs of the artificial intelligence (AI) industry.
As per a recent report from Bloomberg, the unprecedented demand for data center and GPU resources driven by AI is providing crypto mining companies with fresh prospects in the AI sector as they repurpose their existing infrastructures.
Rising Computing Power Demand Fueled by AI Sector
The AI explosion has resulted in a remarkable scarcity of equipment and resources vital to the industry, including the electricity required to fuel these resources.
The report revealed that newly constructed facilities are swiftly being leased out, with approximately 83% of the capacity already spoken for by AI firms and cloud-service providers, as per a March report from commercial real-estate firm CBRE Group.
In order to cater to the escalating need for data center space, numerous companies are looking towards crypto mining firms that already possess the essential infrastructure and are seeking more lucrative applications for their properties.
“I keep receiving calls out of the blue, or messages from colleagues in the industry who are in search of capacity because it’s simply not available,” recounted Matt Brown, Chief Operating Officer at Core Scientific, at a conference hosted by Nvidia.
“Everyone is frantically trying to figure out where they can find capacity in the next 12 months, and it’s becoming increasingly challenging,” Brown added.
Core Scientific’s Collaboration with CoreWeave
This trend of collaboration was underscored when Core Scientific announced a partnership with AI startup CoreWeave, anticipated to generate around $3.5 billion in revenue over a 12-year period.
“We see the current AI landscape as one where we can repurpose our existing infrastructure to accommodate clients looking to deploy extensive GPU arrays for their AI endeavors,” elucidated Core Scientific CEO Adam Sullivan.
The company has pinpointed approximately 500 megawatts of available capacity for conversion into AI facilities, potentially constituting the largest GPU installation tailored for AI on a global scale. This capacity is adequate to power hundreds of thousands of households for a year.
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