Meta* has radically changed its strategy regarding the expansion of the network of data centers, explaining its decision by the fact that the construction of facilities for AI will be cheaper and faster. As part of the new policy, data center expansion in Denmark has been halted and projects in the United States have been suspended, DatacenterDynamics (DCD) reported. CEO Mark Zuckerberg promises that 2023 will be “the year of efficiency”, and is going to abandon inefficient projects, as well as eliminate some of the managers who have become a brake on the path to growth.
Until recently, the company argued that data center costs would not decrease anyway, despite cost cuts elsewhere due to losses associated with the development of the metaverse, problems in the core business, and the impact of the global economic downturn. However, during the fourth quarter results report, the company said it plans to lower capital investments in IT infrastructure, including the construction of the data center.
Image: Meta*
If over the past quarter the company spent $9.2 billion, “due to investments in servers, data centers and network infrastructure”, now instead of the previously planned $34-37 billion, the company is going to spend $30-33 billion on this item. updated plans to reduce data center construction costs in 2023 as we transition to a new data center architecture that is more cost effective and can support both AI and other workloads,” said Meta*.
Grand Teton AI Platform (Source: Meta*)
The company promises that “the new data center architecture will be cheaper and faster to build than the previous one.” Meta* will use a “new phased approach” that will initially build smaller facilities with lower initial capital costs, which can be developed as needed, rapidly increasing their capacity. Simply put, Meta* intends to use a modular way of building. TrendForce analysts note that together with Meta*, Amazon, Google and Microsoft will reduce equipment costs.
* Included in the list of public associations and religious organizations in respect of which the court made a final decision to liquidate or ban activities on the grounds provided for by Federal Law No. 114-FZ of July 25, 2002 “On countering extremist activity.”
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