Happy Wednesday and welcome to Data Center Digest.
We’re looking at data centers and the people, technologies, and trends that make them run.

Here’s what we’re looking at today:

🍟 New AI chip-maker raises $110 million from Microsoft and crew
⚔️ CBRE spells out just how booming the data center market is getting
☢️ A Swedish nuclear co has plans for SMRs to power Sweden’s data centers
Big Deals: Nvidia announces a massive deal with two Indian corporate giants to advance AI
Resources: An awesome and funny podcast you should check out.

Est. read time: 5mins 15

- News -

d-Matrix gets $110 million infusion from Microsoft, others

Funding for startups in the microchip space has been hard to come by this year as Nvidia establishes itself as the de facto king of the market. However, that hasn’t stopped Santa Clara-based d-Matrix from raising a massive Series B round from some of the industry’s biggest players.

d-Matrix

The AI chip startup, which raised $44 million last year, designs chips that are optimized to help power generative AI applications.
These chips are meticulously designed to incorporate digital "in-memory compute" capabilities, significantly improving the efficiency of AI code execution.
Basically, they run complex code using the least energy possible.

While Nvidia specializes in chips designed for extensive AI model training, d-Matrix chips are aimed at executing the “inference” phase of AI processing. (So, Nvidia's chips train large AI models to perform specific tasks, and d-Matrix chips carry out those tasks efficiently once the models are trained.)

What’s more

The chips, which will be launched officially next year, are currently only being purchased by prospective customers on an evaluative basis.

But d-Matrix’s investors are confident…

Sasha Ostojic, with VC firm Playground, said this about the project: “We have solved the computer architecture. We have solved the low power requirements and the needs of a data center - (we) built a software stack to deliver the lowest latency in the industry by orders of magnitude."

CBRE reports record-low data center vacancy rates across N. America

Surprising no one in the industry, CBRE Global Data Center Trends 2023 report highlights the continued break-neck expansion of the global data center industry.

Here’s what it says:

• Record high demand everywhere: The data center market across the globe is experiencing robust construction, increasing rent, and high demand, particularly in primary markets. This is primarily driven by hyperscale companies, accounting for over 80% of all leasing activities.

• Extremely low vacancy rates: Major North American markets have a vacancy rate as low as 2.88%, while secondary markets fare slightly better at 5%. This scarcity of available space has led to increased prices, ranging from 5% to 20%, depending on the market.

• Power is a problem: Power supply constraints continue to hinder growth worldwide, and have become one of the primary constraints for operators, and secondary markets with sufficient power supplies are becoming more attractive.

• Economic impact: High interest rates and budget constraints have led many enterprises to adopt a conservative approach to IT infrastructure, buying less and indirectly easing demand.

• Long-term scarcity: These conditions are expected to persist for the next two to three years, with data center operators unable to build facilities quickly enough to meet demand.

• Latin American growth: The Latin American data center market is experiencing significant growth, driven by technology adoption and investment. The region, particularly Mexico, Brazil, Chile, and Colombia, is expected to witness increased demand for colocation over the next decade.

• Nearshoring trend: Mexico is attracting foreign investment for data center construction to serve neighboring regions, aligning with the trend of "nearshoring."

- News -

Swedish firm plans huge SMR campus to power data centers

Swedish nuclear firm Kärnfull Next has unveiled its ambitious plan to establish a campus of small modular reactors (SMRs) on Sweden's eastern coast in Nyköping.

SMR’s

SMRs are touted as a cost-effective and more manageable alternative to traditional large-scale nuclear projects. With power outputs averaging around 300MW, SMRs can be constructed using standardized, factory-made components.

It’s this level of standardization that proponents hope potentially can streamline the planning and approval process.
These SMR proponents, including Rolls-Royce in the UK and Nuscale in the US, emphasize the importance of nuclear energy as a carbon-free option for decarbonizing society.

Kärnfull

Kärnfull Next initiated a feasibility study in May to assess the suitability of Studsvik's site, with results expected by December.
Based on favorable findings, a memorandum of understanding has been signed to explore commercial nuclear energy production there.

The company is actively considering aspects like financing, permitting, and potential power purchase agreements with off-takers and anticipates making decisions on these matters by late 2024.

The project may also engage Instance Architects as the potential architect if it progresses.

In the United States, Green Energy Partners is planning a site with multiple SMRs in Surry County, Virginia, situated near an existing large nuclear power station, further highlighting the growing interest in SMRs as a sustainable energy solution for various applications.

- Big Deals -

Nvidia partners with two of India’s largest companies

Nvidia, the GPU powerhouse, has embarked on collaborations with two of India's corporate giants, Reliance Industries and the Tata Group, to harness the power of AI.

Reliance India

With Reliance, Nvidia is set to construct AI infrastructure that promises to be "over an order of magnitude more powerful than the fastest supercomputer in India today."
The endeavor aims to develop AI tools such as translation services and weather information for rural farmers, benefiting an extensive customer base of 450 million Jio users.

This cutting-edge AI infrastructure will also be accessible to scientists, developers, and startups across India, hosted in AI-ready computing data centers expected to expand to a whopping 2,000MW.

Tatas

Nvidia is also collaborating with Tata Communications, a key player in global internet routes. Together, they will construct an AI supercomputer driven by the GH200 Grace Hopper Superchip and establish an AI cloud interconnected with TCS's network.

TCS, boasting a workforce of 600,000 employees, aims to empower its personnel with AI skills and drive the development of generative AI applications.

This is a massive deal for all involved and could be a major step towards the digitization of the Indian economy.

Resources

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- Taylor