Government data centers need to be AI-ready but face stricter regulatory and budgetary controls than private sector facilities.
The U.S. Federal Government operates thousands of data centers and there are thousands more around the world. Canada has almost 500 more federal data centers . Some North American facilities contain the latest technology. But many are aging and in need of a significant upgrade—and all must be prepared for the AI transformation.
According to analyst firm Omdia, AI will drive over 50% of global data center capacity by fueling massive productivity and efficiency gains. This surge in demand is being generated by the development of racks that can hold as much as 120 kW of compute power. Within two years, density could rise as high as 600 kW per rack.
Omdia predicts that data center capital expenditure (CapEx) will increase by more than 50% between 2024 and 2030. While the latest chips attract all the headlines, the bulk of that investment will be for physical infrastructure such as power and cooling, where spending is rising at a rate of 18% per year. Transfer switches, uninterruptible power supplies (UPS), power distribution units (PDUs), energy storage systems, DC power systems, switchgear, and busways are destined to experience monumental demand. If the underlying power infrastructure is not refreshed, federal data centers won’t be able to support demanding AI workloads.
Traditional data center designs can no longer cope with AI densities. Data center analysts are predicting sweeping architectural changes such as DC power being served directly to servers and the introduction of higher voltages. Next-generation UPS systems, too, are adding power quality features and larger batteries that will be an essential component of federal AI facilities.
The cooling repercussions of the AI wave
The sheer quantity of power needed to drive federal AI workloads demands major advances in heat rejection. For example, direct-to-chip (DtC) cooling channels water or a refrigerant to cold plates sitting directly on top of computer chips as a more efficient way to remove heat. The latest graphics processing units (GPUs) require DtC to facilitate peak performance every time. Hence, forecasts that DtC spending will rise from $1.5 billion in 2024 to $5 billion by 2028.
Innovative federal data centers serving the most demanding AI workloads will lead the way in the broad adoption of DtC. Other data centers are likely to gradually introduce upgrades such as rear door heat exchangers (RDHX) and in-rack liquid cooling systems to gain familiarity with new forms of cooling.
Meanwhile, air cooling is not going away. Single-phase DtC will dominate the liquid cooling market, but it will be a long time before air cooling becomes unnecessary in the data center. Future data centers will need plenty of liquid and air cooling working in tandem for optimized efficiency.
Reliable access, control, and security
AI makes it imperative that federal agencies scale up their data centers quickly to meet new demand. This must be accomplished reliably and securely. After all, more than 3 million people are employed by the U.S. federal government. They need access to their applications, whether in the office or remotely, with no downtime or delay.
But the sensitive nature of federal systems and databases necessitates the highest degree of control and security. Multiple layers of protection must be in place, including physical security and controlled access, to defend against cyberattacks and other threats. This includes KVM solutions for access to both classified and non-classified data. Such systems must be able to accommodate the many security classifications and layers of access privileges that exist at the federal level. Smart cards (CAC), biometrics, and multi-factor authentication (MFA) are just some measures that should be part of it. Secure KVM switches should include capabilities such as permitting certain data streams to flow only in one direction, active intrusion detection, tamper prevention, and providing IT and cybersecurity personnel with visibility into all computers. Federal AI data centers must deploy the best in digital infrastructure management, control, security, and reliable access.
Federal AI data centers must be compliant
The federal AI data centers of tomorrow will comprise highly dense racks supported by sophisticated power and cooling infrastructure and advanced controls. All of it must be underpinned by strict adherence to privacy, data protection regulations, and compliance mandates, including the Trade American Act (TAA) and the Buy American Act (BAA).
Vendors serving the federal space must be agile enough to support the U.S. government and the evolving nature of government procurement. They must be able to interact smoothly with all federal agencies, including the military and the State Department, and they must be able to execute internationally in Outside Continental US (OCONUS) territories. They must be able to work well across all levels of the value chain, including large defense contractors, Federal Systems Integrators (FSI), national and local resellers, and all approved contractors and cleared entities.
For more information on how the government is adopting AI use and preparing the infrastructure, visit the AI in Government page.
