According to analysts at Mizuho Securities, modular data centers expanding to satisfy the growing power needs of generative artificial intelligence might benefit Dell Technologies (DELL, Financial), Nvidia (NVDA, Financial), and other
IT companies.
In a report, the analysts noted an estimated 800 to 1,000 megawatts of unleased power capacity—enough to run 50 to 60 new data centers. The growing need for AI infrastructure could hasten the acceptance of modular data centers, which provide scalable and effective means of supporting AI implementations.
The analysts added that beneficiaries of this trend include Dell, Nvidia, Broadcom (AVGO, Financial), Credo Technologies (CRDO, Financial), and Micron Technology (MU, Financial). As businesses commit significantly in the field, modular data centers are projected to be essential in meeting the power needs of artificial intelligence and high-performance computing workloads.
Rising as a major theme in the tech industry, generative artificial intelligence is driving more attention on infrastructure needs to sustain its expansion and power requirements.
