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Home » Amazon revamps its data centers for the era of generative AI
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Amazon revamps its data centers for the era of generative AI

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Amazon (AMZN) is giving its huge Amazon Web Services (AWS) data centers a facelift. The company announced that it is improving the efficiency, availability and design of its massive computing facilities to keep them operational for its customers and provide them with the kind of processing power they need to run new business applications. Generative AI.

“We have made many improvements in terms of simplifying our electrical and mechanical design that will further improve availability for our customers,” Prasad Kalyanaraman, vice president of infrastructure services at AWS, told Yahoo Finance.

“Generative AI requires a significant amount of power for these racks and for these chips. And we also innovated in the design of the power delivery to these servers,” he added.

AWS is Amazon’s most profitable business unit. The segment brought in $90.7 billion in 2023, less than the retail division’s $484 billion in revenue. Operating profit, however, reached $24.6 billion, eclipsing Amazon’s retail operating profit of $12.2 billion.

Any changes to AWS infrastructure will certainly impact the company’s bottom line over time. AWS is the world’s largest cloud service provider, ahead of Microsoft (MSFT) and Google in third position (GOOG, GOOGLE). And anything that improves the availability and performance of the cloud business has the potential to attract more customers while ensuring that existing users don’t flee to Amazon’s competitors.

Amazon says the latest updates include simplified electrical and mechanical designs for its data centers that ensure infrastructure availability above 99%. In other words, the company has streamlined its hardware to ensure that its data centers remain operational without any problems.

The tech giant says it’s also preparing for Nvidia’s (NVDA) upcoming Blackwell chips by equipping its data centers with liquid cooling capabilities. Data centers typically use air-cooled servers that dissipate the heat generated by their chips and servers using fans. But according to Kalyanaraman, servers running Nvidia’s Blackwell chips or Amazon’s Trainium 2 chips get so hot that the only way to cool them is with a liquid cooling system.

IMAGE DISTRIBUTED FOR AMAZON WEB SERVICES - Attendees walk through an exhibit hall at AWS re:Invent 2021, a conference hosted by Amazon Web Services (AWS), Wednesday, Dec. 1, 2021, at The Venetian in Las Vegas. (Noah Berger/Amazon Web Services via AP Images)
Attendees walk through an exhibit hall at AWS re:Invent 2021. (Noah Berger/Amazon Web Services via AP Images) · Amazon Web Services

You can think of a liquid cooling system like a car’s radiator system. Typically, coolant flows through a series of pipes to a block attached to a server chip. The heat generated by the chip is transferred to the block and then to the coolant, which then passes through a radiator where it is cooled and recirculated back to the chip.

Heat is a major problem for computer components. If a system gets too hot, it will slow down or shut down completely to prevent serious damage. It is therefore essential for cloud computing companies to keep new AI servers cool.

“We have… over a hundred thousand customers running generative AI applications, from training to inference to fine-tuning services like SageMaker and Bedrock, as well as our infrastructure services,” explained Kalyanaraman . “So these innovations allow these customers to run a lot more compute on AWS. This allows us to manage this efficiently for customers and also run these services in a highly available manner.

StockStory aims to help individual investors beat the market.
StockStory aims to help individual investors beat the market.

Amazon also claims to improve the overall electrical efficiency of its data centers, meaning the company will be able to get more performance out of the same amount of power it uses.

“With these improvements, our mechanical efficiency improves by 46%, which means you have more power actually available for computing,” Kalyanaraman said.

The proliferation of generative AI technologies means data center companies are using a lot more energy. This has led companies like Amazon, Microsoft, and Google, among others, to look for ways to improve data center efficiency and new energy sources, including nuclear power.

The generative AI hype cycle is still relatively new, and cloud providers are poised to continue building ever more powerful data centers. But this will require rethinking how they build and operate these enormous facilities. Amazon’s moves are just the latest example of this reality. And there will certainly be more in the future.

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Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

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