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Applied Digital is Scaling Up Infrastructure to Handle Growing GPU Deployment Needs

Applied Digital is expanding its infrastructure to meet the growing demands of GPU deployment driven by AI compute needs. The company focuses on constructing facilities that cater to the substantial power and proximity requirements of modern AI infrastructure. This expansion is crucial to maintain pace with the rapid development and deployment of AI technologies.

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By Software And Technology · · Applied DigitalDatacenterhawkDavid LiggittGpu
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Key takeaways

01

Applied Digital is enhancing its infrastructure to support increased GPU deployment.

02

The focus is on fulfilling the significant power and proximity needs of AI technologies.

03

Rapid infrastructure development is essential to sustain AI advancements.

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During a transformative period, Applied Digital experienced a significant increase in demand for large-scale GPU deployment. This demand required a focus on power density, as the networking within data centers, particularly for InfiniBand, necessitated that servers be located close together. Each server consumed 10.2 kilowatts of power, and the optimal performance was achieved when multiple servers were placed within 30 meters of the network core.

Wes Cummins, the CEO at Applied Digital in a conversation with David Liggitt, the Founder and CEO at datacenterHawk highlighted the challenge of finding large amounts of colocation (colo) space that could support interconnected GPUs. Despite securing some colo space from third parties to meet cloud demand for GPU deployment, it became clear that more extensive infrastructure was needed. Consequently, Wes instructed the real estate team to shift from planning 5 to 10-megawatt sites to constructing facilities with hundreds of megawatts, marking a significant strategic shift for the company.

More extensive infrastructure was needed.
— Wes Cummins, CEO at Applied Digital

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About the Experts

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Software And Technology
Wes Cummins
Wes Cummins

Co-founder, Chairman & CEO

Applied Digital

Wes Cummins is co-founder, chairman and CEO of Applied Digital. His career spans technology investing and digital infrastructure: he led technology investing at Nokomis Capital and founded 272 Capital, an investment firm focused on technology companies. He studied at Washington University in St. Louis. That investment background informs his work on the power, land and computing infrastructure required for large-scale AI facilities. His MarketScale conversations explain the company’s shift from Bitcoin-focused facilities toward high-performance computing. With co-founder Jason Zhang and industry interviewers, he examines the physical choices behind that change: access to power, GPU proximity, cooling and the scale of a site. The catalog preserves the dates of these conversations so earlier plans and forecasts are not mistaken for current operating results.

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