JUNEASIA BUSINESS OUTLOOK9Arecent JLL Research report indicates that the increasing adoption of Artificial Intelligence (AI) is set to significantly boost the data center industry in India, which is projected to add 791 megawatts (MW) of capacity by 2026. This expansion will necessitate an additional 10 million square feet of real estate space and is expected to attract investments totaling $5.7 billion. As AI usage continues to grow, the demand for Indian data centers is forecasted to reach between 650 and 800 MW during the period from 2024 to 2026.India is poised to become the third-largest economy, with an anticipated GDP of $5 trillion by 2027, and its digital economy is expected to contribute around 20 percent to this growth. "This digital expansion is anticipated to propel the growth of India's data center industry, projected to increase from 853 MW in 2023 to 1,645 MW by 2026. This increase in capacity will require an investment of $5.7 billion and approximately 10 million square feet of real estate," said Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL. The generative artificial intelligence (AI) boom continues to fuel demand for Nvidia's advanced graphics processors, particularly driven by the need for new AI models capable of creating video and engaging in human-like voice interactions. Nvidia CEO Jensen Huang highlighted that the next significant development in AI involves systems that can process 3D video and other complex information, which will require substantial computing power.Nvidia's advanced Grace Hopper chips, such as the H200, have already been utilized in multimodal models like OpenAI's GPT-4, which can conduct realistic voice conversations and interact with text and images. The demand for these chips has been bolstered by Nvidia's customers, including Google DeepMind and Meta Platforms, who are also developing AI platforms for image and video generation.The company's data center unit reported more than five-fold growth in sales in the first quarter, leading to a forecast of quarterly revenue significantly exceeding estimates. Derren Nathan, head of equity analysis at Hargreaves Lansdown, noted that the increasing need for large language models to be multimodal--capable of understanding video, text, speech, and both 2D and 3D images--has driven this broad-based demand. NEWSROOMINDIA'S AI ADOPTION TO SPARK DATA CENTER BOOM: JLL RESEARCHAI GENERATED VIDEO CONTENT TO DRIVE DEMAND FOR GPUS, SAYS NVIDIA CEO
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