Gartner Insights Abstract

Generative AI Transforms Data Center Design in Chinese Enterprises

Published: 20 February 2024

Summary

Chinese enterprises prefer to adopt generative AI on-premises instead of via public cloud, due to regulation requirements and data privacy and security concerns. Because current infrastructure environments can’t support GenAI initiatives, I&O leaders in China must prepare for data center impacts.

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Overview

Impacts
  • Deploying generative AI (GenAI) on-premises will force I&O leaders to change the way hosting environments are designed because of the limited availability of high-end graphics processing units (GPUs) in the Chinese market.

  • Deploying large GPU clusters on-premises will disrupt existing data centers because training the GenAI model requires high-throughput, low-latency and lossless infrastructure. It also requires renovating facilities to support upgraded infrastructure.

Recommendations

CIOs in China and their I&O leaders preparing infrastructure resources for GenAI adoption should:

  • Develop a high-level data center strategy for GenAI adoption by proactively collaborating with business and related teams in GenAI deployment plan discussions, and forecasting the

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