What a Week!
This is my first newsletter so bear with me while i get my head around the formatting. The news letter will cover three topics every week:
1, News specific to the industry
2, Updates on Colocation deals
3, Updates on Datacenters for sale
INDUSTRY NEWS:
DEEPSEEK
Well this week the Tech industry has been walloped by the launch of DeepSeek, the Chinese AI Chatbot. At one point the US Tech stock market was down $1Trillion with NVIDIA alone taking a hit of $400billion.
It's interesting what NVIDIA made of it bearing in mind that got hammered because of DeepSeek. This was their press release on the 27th January.
"DeepSeek is an excellent AI advancement and a perfect example of Test Time Scaling. DeepSeek’s work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant. Inference requires significant numbers of NVIDIA GPUs and high-performance networking. We now have three scaling laws: pre-training and post-training, which continue, and new test-time scaling."
And for those of you who are unfamiliar with what test-time scaling is like i was see below for an explanation.
"As Pre-training Scaling and Post-training Scaling see diminishing returns, another technique that is gradually emerging is known as Test-time Scaling, which sees the AI dynamically allocate resources during inference in a way that is no longer limited to parameter optimization"
On the 27th January 2025 the AI market blinked. Was it the day the great AI bubble burst or will it be just a bump in the road and next week the rocket will take off again on full after burners? I'm going to bet Western AI companies are going to look at what DeepSeek have achieved and build on it to make their models even better.
Below is a great take from Ben Baldieri who is worth a follow as his posts are easy to understand and educational for those of us who work in the AI / HPC space. Article was written 24hrs after the AI bomb went off.
"A few honest thoughts about DeepSeek AI. Top level, bad for closed models like those from OpenAI and Anthropic, good for adoption and enterprise.It's been an entertaining 24h.The doomers on here would have you believe the world has imploded.US dominance in tatters.The "Red Wave" of Chinese AI is coming for your freedoms.
The global data centre buildout is now a waste of money etc.These are all terrible takes.
The way I see it:
1. DeepSeek has just massively lowered the barriers to entry to compete at the SOTA level
2. They showed that those without liquidity as deep as the Marianas Trench can meaningfully play the game
3. They released their model and research with a full open source license (not whatever Meta is calling open source)
4. They did all this with (potentially) massively reduced computeIn doing so, they also:
1. Gave enterprise customers with massively sensitive data some of the tools they need to train their own models to a level of capability that previously would have required vendor lock-in
2. Inspired under resourced teams to play that little bit harder.
3. Took control of the American big tech narrative4. Paved the way for significantly more compute demand in the future 90% reductions in cost for a given deliverable tend not to result in those cost reductions translating to savings.If a budgetary decision has been made to allocate X amount of capital to a thing, that money will likely still be spent.
You just end up with 10x the deliverable quantity for the same relative spend.From where I'm sat, this whole saga means we get 10x the AI for our money, and that AI is far more likely to be open source and truly configurable than before.
Couple this with:
1. The sovereign AI narrative
2. The cloud repatriation narrative
3. Growing interest in hybrid cloud deployments
4. New data centre platforms making a play for the edgeAnd you have a recipe for:
1. A lot more AI
2. With a more diverse user base
3. With a high average level of capability
4. Across a far greater number of industries
5. With a more meaningful level of competition
6. And a significantly reduced dependence on hyperscalers and closed ecosystems. What's not to like about that?"
KEYSOURCE
Interesting development in the DC services sector with the acquisition of Keysource by Salute who were also acquired by Investment house New Mountain Capital last year. Full details here courtesy of Dan Swinhoe at DCD.
MEGA BUILDS
One of Europe's largest data centres is set to be built in London's commuter belt after the plans were given the green light this week.
Hertsmere Borough Council signed off the almost ￡4billion project for a 100MW DC in the south mimms area.
The DC01UK two million square feet AI focused data centre is expected to open in 2029 and will create around 11,000 indirect jobs once operational and add ￡3.75B to the economy.
COLOCATION DEALS:
Each week I list some of the deals we currently have active. For further information on these contact me directly as they may not be on the ColoTrader website.
领英推荐
AI/HPC Deals:
Power: 40kW
Connectivity: 3GB
Racks: 1
Location: Liverpool
Tier: 3
Price: from ￡14,400/month
Power: 10kW
Connectivity: 1GB
Racks: 1
Location: Runcorn
Tier: 3
Price: from ￡3,577/month
Power: 10kW
Connectivity:3GB
Racks: 1
Location: Manchester
Tier:3
Price: from ￡4,500/month
Power: 10kW
Connectivity: 3GB
Racks:1
Location: Reading
Tier:3
Price: from ￡4,500/month
LOW DENSITY DEALS:
South London Tier 3 Equivalent:
￡399kW / power inclusive. Megaport enabled with multiple additional carriers. 2-30kW racks available now.
Colocation packages available across the UK that include power / cooling and connectivity:
1/4 rack / 9U / 1kW / 100MB from ￡400 month fixed price
1/2 rack / 20U / 2kW / 100MB from ￡700 month fixed price
Full rack / 46-52U / 3kW / 100MB from ￡1000 month fixed price
DATACENTRES FOR SALE:
Below are a selection of Data Centres across the UK, Europe, Nordics and Africa that are currently for sale. For further information on any of these sites please contact me directly.
UK - South East 2MW Legacy Site with existing customers - Leasehold ￡POA
UK - South 300KVA New Build. Ideal POP site for Fibre / Telco - Free hold ￡POA
South Africa - Guateng Province -6MW. Existing customers / Free hold ￡POA
Denmark - Copenhagen - 40MW - New Build Approval / Free hold ￡POA
Finland - Helsinki - 10MW - New Build Approval / Free hold ￡POA
Sweden - Stockholm - 5MW - 50MW - New Build Approval / Free hold ￡POA
*We are always looking for new sites so please contact me for a confidential conversation.
Director of Channel Sales at Asanti
1 个月Excellent work Stuart, great way to kick things off.
Empowering Data Centers: Disruptor | Futurist | Biophilic Activist | STEM Champion
1 个月Some interesting info However:- Referring to Tier levels using numbers is incorrect if you are trying to suggested they have any form of certification from Uptime Institute. By advertising these spaces in this way you are misleading potential clients as to the functionality of the site.