As the internet revolutionized the world and created a digital boomerang, where opportunities and risks collided, a catalyst for innovation emerged, where many ideas were tested and business models were tried in the light of new technology. Now, artificial intelligence (AI) stands ready to take over the stage as the next major technological revolution.
One winning sector is predicted to be the enablers, those who create conditions and build infrastructure to leverage the technology.
We see many different companies emerging that either exploit AI or use the concept as a way to market themselves. However, there are industries that will be deeply transformed by AI. Both through the direct use of the technology and as providers to the new cloud services industry which is now boosted by AI.
When we discuss AI in everyday language, it tends to be a summary term for all technologies that utilize computer resources to solve problems. In this article, we focus on AI and cloud services as a catalyst for new services in areas such as logistics and warehouse operations.
A common denominator for many of the applications we use daily is that they require high transmission capacity and the ability to store and process large amounts of data. This applies, for example, to handling images, video streaming, remote office applications, and analysis of large data sets. It is primarily the latter, the analysis of large data sets using AI, that is still in its infancy but expected to grow rapidly. At the same time, traditional IT services continue to grow with more users and more data needing to be stored and managed.
The advance of AI requires enormous amounts of processing power and storage space. Especially self-generating AI models will require significant resources. The more companies that have access to the tools, the more applications will be developed.
All in all, this means an increased demand for large “hyperscale” data centers, which entails enormous investments in infrastructure. Characteristic of a hyperscale data center is that it is gigantic and super scalable. A Hyperscale data center can have an installed capacity of over 150 MW, equivalent to the needs of a medium-sized city. The Nordics have been identified as an excellent location for the establishment of data centers, especially hyperscale data centers.
Factors such as the favorable climate for cooling facilities, heat recovery, high quality of communication infrastructure, access to well-educated labor, sustainable electricity production from hydropower, solar energy, wind power, and nuclear power, as well as access to land, all play a role. It is estimated that a hyperscale operator invests around $10 million per megawatt, resulting in total investments of up to $1.5 billion for an establishment. Just the alternative interest on the capital amounts to millions per day, so now it becomes important to be able to generate revenues quickly.
A typical project spans several years and requires a logistics system that can handle large quantities of valuable components in an uninterrupted flow. All components for a data center come from different parts of the world and require customs handling, quality controls, and interim storage before they are finally assembled. The logistics must be efficient, secure, and in line with applicable customs and import regulations.
Efficient Logistics in Focus
Logent is part of the rapid development and is a logistics partner to one of the largest establishments currently underway, where Logent is involved in the construction of the new industry.
An example of successful logistics in this context is Logent’s collaboration with a leading player in data hall operation. Logent has quickly established an efficient logistics function for the assembly and delivery of data racks to one of the largest data centers in the Nordics. With over 100,000 servers to be installed within a limited time frame and in large volume, Logent plays a crucial role in ensuring that the flow operates without interruption and with high quality so that the startup of the center is not disrupted.
By building strong teams and leveraging its expertise in logistics, Logent has enabled a smooth establishment and commissioning of the project, which is uniquely large in its kind. The project is an example of how efficient logistics becomes a crucial success factor for complex infrastructure projects.
Sources:
”The Evolution of Artificial Intelligence: Past, Present, and Future” – Scientific American
”The Economics of Hyperscale Data Centers” – Forbes
”Norden som plats för datacenter: En undersökning av faktorer som påverkar etableringsbeslut” – Nordiska ministerrådet