What Does the Dawn of DeepSeek Mean for Data Centers?

Story by Nathan Eddy

Key Points:

• The emergence of DeepSeek and its efficiency improvements in AI processing could have significant implications for data centers, even as the debut of the AI model triggered a major sell-off in U.S. tech stocks early this week.
• Market darling 英伟达 fell more than 12% and the Nasdaq fell 2.7%, and analysts said the reaction reflects concerns over whether the massive spending on AI and its infrastructure is justified.
• Any shift toward cheaper, more powerful, and less energy-intensive algorithms has the potential to significantly expand AI adoption, which could ultimately fuel demand for both large-scale and distributed data center infrastructures.
• The financial implications of this growth are substantial: According to Farney, major hyperscale data center operators were already spending $200 billion annually on infrastructure, a figure that has now surged to $300 billion.
• While training large AI models will continue to require massive, centralized facilities, the growing focus on AI inferencing — using trained models to deliver real-time insights — may drive demand for distributed, latency-focused edge data centers.
• Dr. Kai Wawrzinek , co-founder of Impossible Cloud Network , said even with the added efficiency, the need for data storage will only increase across the globe. "The more we use AI, the more power will be required to run the huge data centers that support it. It's inevitable," he said. "We've seen the likes of Microsoft investing heavily in renewable energy like solar, wind, and hydro to tackle the growing need of power-hungry data centers."

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Monitor These Data Center Acronyms in 2025

Story by Chris Tozzi

Key Points:

• For the record, not all these acronyms are brand new – many have been around for years. But we expect them to trend in 2025 because they relate to technologies or domains (such as AI or new types of data center infrastructure offerings) that are at the center of innovation within the industry.
• ARM, short for ‘Advanced RISC Machines’, is a type of CPU architecture that has existed since the 1980s. For most of its history, ARM played little role in data center servers, which instead relied in virtually all cases on x86 computing chips.
• Slowly, however, ARM has been gaining ground in data centers. Hyperscalers have built their own ARM-based chips (like AWS’s Graviton processors and Microsoft’s Cobalt chips), and ARM-based servers are available for companies that want to set them up in their data centers.
• A year later, new acronyms have gained prominence and it’s time to update our list. Keep reading for a rundown of the top data center acronyms to watch in 2025 to understand key trends in the digital infrastructure space.

Understanding Key Metrics for Data Center Efficiency

Story by Drew Robb

Key Points:

• Data centers are consuming more power than ever, with AI accelerating demand. According to EPRI, data centers could account for up to 9% of U.S. electricity use by 2030 – more than double today’s levels. Measuring and managing energy use is now critical, but no single metric tells the full story.
• Power Usage Effectiveness (PUE) helped drive early efficiency gains, yet it has limitations. Newer metrics, from Energy Reuse Factor (ERF) to Scope 3 carbon accounting, aim to provide a more complete picture of sustainability. Understanding these evolving frameworks is essential for operators navigating decarbonization and regulatory pressure.

This guide breaks down:

• The most widely used data center efficiency metrics
• Their strengths, limitations, and how to apply them
• Emerging standards for sustainability and AI workloads

Download our free report today!

How is AI Revolutionizing Data Center Infrastructure?

Story by Henry Chapman

Key Points:

• Published last week, AFCOM’s latest State of the Data Center Report (registration required) examines the profound impacts these shifts are having on the data center industry, from rising labor, supply chain, and security challenges to opportunities for innovation in sustainability – such as water conservation measures and the growing adoption of nuclear, solar, and other carbon-free energy solutions.
• According to the report, operators plan a sixfold increase in data center construction in the next three years, with an average facility size of 32 MW. How will these data centers be built?
• A third of all respondents identified a hybrid approach, pairing traditional construction methods with prefabricated modular data center solutions.
• “These innovations accelerate deployment, enhance scalability, and minimize waste – addressing both speed-to-market demands and environmental concerns,” said report author and Data Center World Program Director Bill Kleyman ???? .

Keeping it Cool for Data Centers

Story by Alan Farrimond

Key Points:

• The liquid cooling systems needed for high-density data centers have higher upfront costs than the air-cooling systems used in traditional data centers. There are also worries about water usage, with the largest data centers capable of consuming millions of gallons of water per day.
• Put simply, for a high-density data center to function reliably, it requires an equally robust liquid cooling solution. That solution can be closed loop to minimize water loss using one of three design approaches: Direct-to-chip cooling, Rear-door heat exchangers, and Immersion cooling.

• If liquid cooling systems need to be deployed at multiple data centers, a vendor-neutral basis of design can also provide savings. This involves creating a standardized design that delivers similar performance characteristics across a variety of locations while minimizing rework for each deployment.
• By establishing the need for liquid cooling and showcasing the savings and efficiencies it can deliver, data center teams can create a compelling case for liquid cooling and protect their high-value, energy-intensive GPU racks for years to come with the best available technology.

Major Moves Inside the Industry

Story by James Walker

The Data Center Knowledge News Roundup brings you the latest news and developments across the data center industry – from investments and mergers to security threats and industry trends.

Key Points:

• Multibillion-dollar data center announcements continue at pace this month, as a consortium of tech giants unveiled the Stargate Project – a $500 billion initiative to develop AI infrastructure in the U.S. over the next four years.
• Backed by ソフトバンク , OpenAI , 甲骨文 , and MGX – with Arm , 微软 , and 英伟达 as key technology partners – the project aims to construct 10 data centers, including one already underway in Texas. Oracle Chairman Larry Ellison noted that the venture could scale up to 20 facilities, reflecting its expansive vision.
• XTX Markets said it will invest more than €1 billion to develop a large-scale data center campus in Kajaani, Finland. Amazon Web Services (AWS) plans to invest at least $11 billion in Georgia to expand infrastructure to support AI and cloud technologies.
• While the Stargate project evokes sci-fi imagery, Lonestar Data Holdings Inc. claims it is turning concept into reality by planning the first-ever data center on the moon.
• According to a report in Reuters this week, the startup will use SpaceX’s Falcon 9 rocket to launch a “fully assembled data center late next month by integrating it with Intuitive Machines’ moon lander, Athena.”

Latest Major Tech Layoff Announcements

Original Story by Jessica C. Davis, Updated by Brandon Taylor

Key Points:

• As COVID drove everyone online, tech companies hired like crazy. Now we are hitting the COVID tech bust as tech giants shed jobs by the thousands.
• Updated January 31, 2025 with layoff announcements from Moon Active, Stripe, Chrono24 and Pocket FM.
• Check back regularly for updates to InformationWeek's IT job layoffs tracker.

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