Data Center World 2025

Scott Data(SD) has operated a colocation facility since 2006. In May of 2023, the DCW Keynote delivered by Bill Kleyman provided insights into the emergence of AI as a general-purpose technology while also identifying the challenges for colocation facilities to support the required power and cooling density for AI GPUs. This keynote was the inflection point for a historical colocation operator to begin an AI journey.

This presentation will provide a timeline, key findings, and lessons learned when transitioning from a traditional colocation operation to an AI colocation service provider. The foundational data driven methodology supporting this business evolution was informed by colocation customers increasing the need for powerful graphics processing units (GPUs) to handle complex AI workloads. The market signaled the need for consumption of GPU as a Service, High Performance Colocation (HPC solo) and managed services for these AI offerings.

Taking a partnering approach, the colocation operator developed an ecosystem of partners that best positioned the business to execute an AI service proof-of-concept, understand the complexities involved in the design, develop the budgetary considerations, execute the installation of the AI architecture, operationalize of AI infrastructure, and validate the business case for the AI offering.

Takeaway

-An AI offering requires more than "just" the GPU; learn what additional resources must be considered.
-Customer success isn't only about finding net-new customers; understand how Managed Services are key to successful growth.
-The importance of thinking beyond today.