Susana Schwartz
Rural data centers need more fiber in their diet
Reliable network connectivity will be crucial to AI development and deployment in small communities.
AI workloads and large-scale data center developments are accelerating the need for connectivity among hyperscale campuses, and the servers, storage, and switches within. Connectivity and fiber rollouts were a big part of the conversation in this week’s episode of Unmuted, where RCR Wireless Managing Editor Catherine Sbeglia Nin talked with Bill Long, chief product officer at Zayo, about the impact on networks of “gargantuan” facilities with close to 1 GW of power. “While AI data centers are a key catalyst,” Long said, connecting single sites “is not sufficient to underwrite a long-haul sort of build.” Instead, Zayo’s strategy is to design routes that “connect the communities that are along the way,” often with funding from government programs that focus on rural inclusion.
Indeed, rural inclusion has become a major focus for AI infrastructure’s biggest players, such as OpenAI, Oracle, and SoftBank. They are hoping for accelerated broadband expansion in rural parts of Texas, Ohio, New Mexico and Wisconsin, where Stargate data centers are being built. Connectivity might become a concern sooner than expected, as yesterday, SoftBank’s board approved, ahead of schedule, a $22.5 billion payout to complete its $30 billion investment in OpenAI. While the payout is contingent on OpenAI’s ability to complete a corporate restructuring ahead of a potential IPO, success would mean a steppingstone toward almost 7 GW, and by end of 2025, the potential to hit its 10 GW target.
“Though it is still early days for AI, we are already seeing substantial impacts to telecom network infrastructure with every sign pointing to continued high velocity change,” said Stephen Douglas, head of market strategy at Spirent, during a webinar with RCR Wireless News. Douglas described five levels of network automation that, when applied to network testing, reveal a roadmap to a full autonomous networks.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
Data centers are hungry for fiber: In a recent RCR Wireless interview, Zayo’s chief product officer Bill Long describes seismic shifts in connectivity.
SoftBank board approves payout: SoftBank cleared its $30 billion OpenAI investment plan, with $10 billion of that to be syndicated to co-investors.
The need for rigorous testing: In the frenzy to adopt AI, a lack of testing can lead to operational disruptions, security breaches and costly downtimes.
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AI Today: What You Need to Know
DOE partners with AMD: The U.S. Department of Energy forged a $1 billion supercomputer and AI partnership with AMD to tackle large scientific problems ranging from nuclear power to cancer treatments to national security.
Qualcomm throws down the gauntlet: Qualcomm launched AI chips in challenge to Nvidia’s dominance, announcing two new AI inference-optimized solutions for data centers.
Unusual move to expand FERC authority: U.S. Energy Secretary Chris Wright proposed a regulatory change to expedite the connection of power-hungry data centers to the national electric grid.
Possible quantum leap: Google claims “quantum advantage” gain, with a quantum processor solving a problem faster than a classical computer, but skeptics question whether it will lead to practical applications for quantum computing.
Alberta Canada-firm eyes Alabama for DC: Calgary-based Westbridge Renewable Energy expanded its AI-ready data center portfolio with a new Alabama project that further extends its pipeline of solar, battery energy storage, and data center projects across North America.
Nvidia “Midas Touch”: A month after Nvidia announced it would acquire a 5% stake in Intel for $5 billion, with Intel agreeing to design and manufacture custom data center and client CPUs with NVLink, Intel Q3 momentum led to a rating upgrade.
