UNRAVELING THE ROI QUOTIENT FOR AI DATA CENTERS

There’s no denying that AI, and specifically, AI data centers, are a major topic of discussion as they are described, defined, and dissected in any number of ways across all sectors of the industry. As with many technologies, developing an AI data center is expensive, and the successful interoperation of all elements within it drives capital expenditures even higher.

In the world of economics, the more money spent on a technology, the greater the need to define and determine the return on investment (ROI). The challenge right now is that this is still an unfolding market, and the expected ROI remains somewhat undefined. As noted below, the life cycle of an AI data center is relatively short, making it imperative to optimize ROI from the project’s outset.

ROI isn’t just about the investment in all the physical elements comprising the AI network, including chips, boards, and connectors but the efficiency and efficacy of the operation of those elements within that data center. This means that analyzing the network in the form of end-to-end emulation and thorough pre-silicon testing and analysis is essential if a realistic ROI is to be adequately assessed and achieved. There are two different use cases to consider: A network equipment manufacturer (if it does its own silicon)would perform pre-silicon work, while an AI data center operator would do ETE emulation. And, even though the specifics of ROI are not yet available, it’s possible to optimize it as part of the overall design and deployment process.

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