Webinar Recap | AFCOM SoCal 2Q23 Webinar: Post-DCW & PTC Trends Report

Summary

On June 8th, AFCOM’s very own SoCal Chapter presented a dynamic webinar on the latest findings from two of the industry’s biggest conferences.

At the webinar’s start, President Jason Shepard highlighted the sheer diversity and “full variety” of users who make up the AFCOM SoCal community—namely, corporate users from enterprise data centers; members of hyperscalers, or the “Facebooks and Googles of the World”; and third-party operators, or those belonging to multi-tenant facilities—all of whom are united in their common bond to learn about the latest trends and technologies that will affect the industry. AFCOM SoCal’s diverse composition is reflected in the diversity of enterprise corporations throughout California, which includes a strong showing of biotech, business, real estate, and media.

While Shepard asserted that business remains robust throughout California, the industry is still affected by talent shortages and skills gaps. Enter: Diane “Di” Krehbiel-Johnson, who is deeply involved in Executive & Technology recruiting. Krehbiel-Johnson first noted the specific roles that have the highest current demand; namely, executive, HR, systems and network administration, project engineering, security, and help desk jobs. Furthermore, the rising demand of AI should in turn create a rising demand for more AI-oriented jobs. She then shared a few critical tips in allowing your application to stand out from others, including modifying your resume to reflect the language found in the original job posting, developing an “elevator pitch” to immediately advertise your skills, and much more.

The AFCOM SoCal Board first presented these topics within the specific context of California’s data center industry. They then zoomed out to discuss how these trends were presented and discussed at Pacific Telecom Council (PTC) 2023 and Data Center World (DCW) 2023, which are two of the biggest data center conferences across the nation, inviting employees from various countries to witness what lies in store for the future of data centers.

Common Key Takeaways

First, Shepard and Greg Stover indicated the shared themes that each conference discussed in detail:

• Sustainability/ESG Initiatives
  
• Supply Chain Setbacks
  
• Cloud/Edge/Hybrid Models/Repatriation
  
• AI/ChatGPT/Virtual Reality
  

Clearly, as seen in the topics above, there was a healthy mixture of looking at immediate solutions to the present’s most pressing issues, while also keeping one eye cocked towards the future of technology and our industry’s environmental impact.

“There’s a couple things that seem to show up at every conference we attend,” Stover explained. “The good news is that data center demand continues far beyond any of our explanations. However, it’s also driving some serious issues. For example, sustainability and ESG initiatives absolutely remain top of mind. While CEOs are standing up and saying ‘we’re going to be carbon-neutral by such-and-such date,’ people are starting to peel back the onion and ask exactly how we’re going to get there.” Stover further described the increase in energy usage caused by people’s continued reliance on connectivity and other technologies, as well as the struggles the industry has taken in terms of “doing more with less.”

While Stover indicated that the supply chain shortages have improved, “they’re not even close to fixed.” In particular, Stover noted that electricity, generators, chillers, and fans still remain scarce. Products have been affected due to isolated problems caused by a lack of boards and chips. “Right when you think you’ve got something fixed, a week later you realize it’s not fixed,” he emphasized.

Fortunately, these issues surrounding the supply chain may in fact be a blessing in disguise; it’s forced the industry to collaborate more closely, for example, or partner with other companies to avoid costly delays. According to Stover, “If you delay a day, it’ll cost you a week. Delay a week, it’ll cost you a month. Delay a month, it’ll cost you a quarter.” It’s clear that companies are innovating and taking the necessary steps to increase transparency and foster connections in order to avoid these outcomes.

Bill Kleyman then took the stage to offer his insights on the latest developments in cloud, edge, and hybrid models. However, he first emphasized just how much connectivity has been developed in recent years. “One of the most interesting things we saw at PTC was just how much new cable (terrestrial and underwater) is being laid down in emerging markets,” he explained. Specifically, South America, Canada, and Asia have seen tremendous growth in connectivity, not to mention the growth of data center construction itself.

This growth is necessary to match the seemingly exponential increase in demand of AI-centric technologies like ChatGPT, Kleyman stated, which itself demands so much more energy than most other quickly adopted technologies. Citing statistics from AFCOM’s 2023 “State of the Data Center” report, Kleyman noted that a single ChatGPT session is roughly 50-100x more powerful than a Google search, consuming about 3-4kWh of energy per use.

AFCOM SoCal’s presentation accurately described the current highs and lows affecting the industry. While it’s clear the industry is poised to experience tremendous growth in the coming years, it must also contend with issues such as NIMBYism, skills gaps, supply chain shortages, and carbon reductions.

Fortunately, thanks to webinars like this and other educational materials provided by AFCOM’s local chapters, the data center industry is more than ready to meet the challenges to come, and find further opportunities to expand and optimize the many benefits it provides across the globe.

Click here to access the full recording and presentation.