What’s next for data centers in 2025

Building an AI Strategy

The question isn’t ”What will AI do?” but rather, “What won’t it transform?” The year 2024 was dominated by AI, driving major discussion and disruption across data centers, whether on-premises, in the public cloud or at the edge, in virtually every industry. With strong growth in IoT devices, new applications from an ever expanding array of startups and use cases, and general consumer interest, now is the time to modernize data centers to handle the demands of AI workloads and applications.

Because of this, an AI strategy should be a part of 2025 data center prioritization. It all starts with an understanding of the use case or challenge AI is trying to solve and then working backward to put in a computing solution that fits best for that need. For example, companies with smaller AI efforts and lower budgets could benefit from buying AI-enabled laptops, edge devices in office branches or servers with the ability to add accelerators like NVIDIA graphics processing units or Intel Gaudi.

For larger AI initiatives with massive data troves involved, ultra-low latency or high-processing needs, companies may look at full data center renovations, modular data centers for more space or a hybrid cloud-edge approach to accommodate substantial cooling, cabling and power needs. 

Leveraging public cloud providers with edge computing can also help ensure an optimal solution is in place while ultimately minimizing overall costs. It is important to have an AI strategy and business case in place given the ongoing advancements and innovation with smaller and cheaper computing power that are being released at rapid pace. 

Shifting Virtualization Solutions 

Another hot topic of 2024 that we’ll likely continue to see in 2025 is companies prioritizing their virtualization strategies. Market shifts, new pricing strategies and the rise of new products and players are driving many companies to revisit their on-premises virtualization strategy. Whether companies end up staying with their current hypervisor vendor or not, 2025 is a good year to re-evaluate virtualization needs to optimize current data center solutions or migrate to another solution whether on-premises or in the cloud.

With vendor competition increasing, companies should assess cost implications, available expertise, alternative options and the timeline required for implementation, as these transitions and migrations could take months or years to complete. 

Adopting a Holistic Computing View

Companies are increasingly embracing hybrid multi cloud and data center solutions. There is also an increase in edge and end-user device computing due to low-latency and high-bandwidth needs. Given the complexities of computing across so many environments, managing infrastructure has become more challenging.

Unfortunately, many organizations approach their computing strategies in silos by separating cloud from data center, or internal IT from business functions without fully embracing a unified, hybrid approach. Despite their shared goal of managing compute, processing and storage resources, these groups often operate with vastly different strategies, creating barriers to alignment and efficiency. Whether computing takes place in the cloud, within an on-premises data center, at a business site, or even within the devices themselves, companies should create a holistic computing view and goals for their software, infrastructure and overall spending on resources across these environments.

As data centers undergo rapid transformation, IT professionals must prioritize a strategic approach to AI, adapt to shifts in virtualization and adopt a holistic view of computing to support workloads. Focusing on these key areas will not only drive operational efficiency but also position organizations for future growth and innovation.

Article Topics

data centers  |  edge computing  |  modular data centers  |  virtualization  |  World Wide Technology  |  WWT