Data Center Rack Power Trends and What They Mean for Build-Outs

The insatiable global appetite for compute – intensified by the era of artificial intelligence (AI) – continues to drive exceptional demands on data center infrastructure, prompting many enterprises to build new data centers and/or retrofit existing ones.

This rapid deployment of new data centers presents challenges as companies grapple with availability of real estate, utilities and power, particularly in prime locations. Addressing these challenges means rethinking traditional infrastructure approaches and data center designs with a particular focus on rack power demands.

Power density has become a critical metric for data center operators in a world where some GPUs designed for AI workloads consume more power at peak usage than the average American household. Open AI estimates that the compute demand for AI training has doubled every 3.4 months since 2012, seven times the speed of Moore’s Law, and shows no signs of abating.  This unprecedented pace of growth is driving a surge in power requirements, highlighting the need for data centers to support high-density racks that can accommodate powerful equipment.

The Growing Need for Higher Rack Power Density

U.S. data center power consumption is expected to reach 35GW by 2030, nearly doubling its 2022 level, according to a report by Newmark. Hyperscalers such as Amazon Web Services, Microsoft Azure and Google Cloud, which support large-scale cloud and enterprise workloads, will need to handle 40-60kW per rack or more to keep pace with demand.

In this environment, power density emerges as a strategic imperative for data center operators looking to future-proof their infrastructure.

Challenges in Prime Locations

The constraints of power and real estate in high-demand regions amplify the importance of density. As the world’s largest data center market, Northern Virginia exemplifies these challenges. With over 300 data centers and more than 2,500 MW of capacity, the region has reached a saturation point. In 2022, development paused due to limited power availability and growing opposition to new projects encroaching on residential areas and historic sites.

This scenario is not unique to Northern Virginia. Across the globe, data center operators grapple with similar constraints in prime locations. The solution lies in maximizing power efficiency and density to extract more value from existing facilities and minimize the need for expansive real estate footprints.

Benefits & Challenges of High-Density Racks

By increasing power per rack, data centers gain flexibility in how they expand and optimize resources. Higher-density racks allow operators to either scale up within an existing footprint or reduce the total number of racks required to achieve the same computing output.

For organizations looking to maximize their existing space, deploying high-density racks enables more computing power within the same physical footprint. This approach allows data centers to delay or even avoid costly real estate expansions while making better use of available infrastructure. It also supports growth without requiring major modifications to the facility layout. However, this strategy intensifies challenges related to heat dissipation, necessitating advanced cooling solutions such as liquid cooling or rear-door heat exchangers, which come with higher upfront costs and ongoing maintenance demands. Additionally, increased power density may push existing electrical infrastructure beyond its capacity, requiring upgrades to power distribution units, circuit breakers, and backup power systems.

Alternatively, organizations can choose to reduce the number of racks while maintaining the same overall capacity. This consolidation minimizes the data center’s physical footprint. However, concentrating more workloads into fewer racks also increases the potential impact of failures, making redundancy and reliability planning even more critical.

The Role of Uninterruptible Power Supply

As data centers continue to support higher and higher power densities, the role of uninterruptible power supply (UPS) systems becomes increasingly critical. UPS systems ensure seamless operations during power outages, safeguarding critical data and applications. Traditionally, lead-acid batteries have been the go-to choice for UPS systems. However, advancements in battery technology are presenting more efficient and sustainable alternatives, such as nickel-zinc (NiZn) battery technology. ZincFive is leading the charge in nickel-zinc immediate power solution innovation, with batteries that deliver three times the power density of traditional lead-acid batteries in a smaller footprint, making them ideal for high-density environments. Their ability to discharge at high rates of power ensures rapid response times, a crucial factor for maintaining continuity in mission-critical operations.

Nickel-zinc batteries are also non-flammable, eliminating the risk of thermal runaway at a cell level — a common safety concern with lithium-ion batteries. This intrinsic safety reduces the need for extensive cooling and fire suppression systems, which traditionally consume around 40% of a data center’s power. By minimizing these auxiliary systems, data center operators can achieve significant improvements in power usage efficiency (PUE), and lower overall Total Cost of Ownership (TCO).

Moreover, NiZn immediate power technology offers a sustainable, recyclable backup power solution for data centers with a significantly lower climate impact than lead-acid and lithium, as validated by third-party analysis. Nickel-zinc’s lifetime greenhouse gas emissions are 25-50% lower than lead-acid or lithium-ion alternatives, making it a safer, more environmentally responsible choice.

Preparing for the Future

As the digital era evolves, high-density racks, efficient power solutions, and forward-thinking designs will enable tomorrow’s data centers to deliver the performance and reliability that modern businesses require. As AI, HPC, and other advanced workloads continue to drive the need for more power in increasingly compact spaces, embracing innovative solutions like alternative battery chemistries and newer technology solutions, such as nickel-zinc, as well as adopting complementary strategies, data center operators can build future-ready infrastructure.