Podcast: Digital Realty CRO Colin McLean Talks Oracle Collaboration, Data Centers' AI Evolution
In May, Digital Realty (NYSE: DLR) announced a collaboration with Oracle to accelerate the growth and adoption of artificial intelligence (AI) computing among enterprises. For this episode of the Data Center Frontier Show podcast, we asked Digital Realty Chief Revenue Officer Colin McLean to expand on key points of his company's AI data center design and implementation efforts in light of the company's new partnership with Oracle.
In an announcement, Oracle and Digital Realty said their new strategic collaboration aims to develop hybrid integrated solutions that "address data gravity challenges, expedite time to market for enterprises deploying next-generation AI services, and unlock data and AI-based business outcomes."
We also asked Colin about how he's seen the trend lines for data center pricing, leasing and capacity changes over the past 5-6 years of the cloud industry, compared to roughly the past year of AI growth since he's been CRO for Digital Realty.
An Ongoing Collaboration
According to the partners, by leveraging the expertise and resources of both Oracle and Digital Realty, customers with mixed requirements will benefit from a tailored and efficient solution that meets their specific needs for GPU-based infrastructure.
"We're excited to be working with Digital Realty to bring innovative solutions to the market that empower our enterprise customers workloads and their ecosystems to harness the boundless possibilities of AI," said Patrick Cyril, Global Vice President, Technical Sales and Customer Excellence – Revenue Operations, Oracle. "Together, we're not just pioneering technology; we're unlocking a future where every challenge is met with unparalleled innovation and every opportunity is maximized."
Notably in the fourth quarter of last year, Digital Realty successfully implemented an OCI Dedicated Region deployment for a major financial services customer, showcasing the potential of the collaboration between Oracle and Digital Realty in meeting enterprise customers' hybrid cloud requirements.
Chris Sharp, Chief Technology Officer of Digital Realty, added: "We're delighted to build upon our relationship with Oracle and enable the next generation of hybrid and private AI adoption among enterprises. Together, we're bringing the extensive capabilities of the cloud to enterprises' private data sets through secure interconnection, unlocking new data-driven business outcomes."
The May collaboration announcement further strengthens Digital Realty's existing partnership with Oracle, which currently encompasses multiple deployments across the globe, 11 Oracle Cloud Infrastructure (OCI) FastConnect points of presence, a global ServiceFabric presence, and a recent Oracle Solution Center deployment in one of Digital Realty's Frankfurt data centers.
As part of the new collaboration, Oracle is also deploying critical GPU-based infrastructure in a dedicated Digital Realty data center in Northern Virginia.
The companies said this deployment, which leverages Digital Realty's PlatformDIGITAL solution for open, purpose-built global data centers, will cater to a wide range of enterprises and AI customers, helping them to address critical infrastructure challenges, including those experienced with NVIDIA and AMD deployments.
Support for Evolving AI and High Density Workloads
Since Digital Realty is so active now in accommodating data center AI workloads and has been an industry front-runner in doing so, DCF asked McLean for any anecdotal info about how AI is affecting the market and demand for data center space and facility designs from his viewpoint.
During our interview, McLean discussed how Digital Realty's partnership with Oracle addresses the challenges of managing high-density workloads in AI and data-intensive applications. McLean noted how there's a need for forward-thinking capacity planning due to evolving requirements and increasing workload density in AI data center design.
He also touched on how Digital Realty emphasizes the importance of sustainability, and the operator's efforts to address power concerns globally, including plans for future expansion into markets such as India and Africa.
We also asked McLean about data center leasing and construction trends in Tier 1 and 2 U.S. markets, and what other data center markets, sites and locations he's most optimistic about nationally and globally for Digital Realty's prospects.
Here's a timeline of the podcast's key moments:
0:32 - Data Center Frontier asks McLean to elaborate on the salient points of AI data center design in light of Digital Realty's partnership with Oracle. McLean explains the significance of the partnership, emphasizing how it addresses the challenges of managing high-density workloads in AI and data-intensive applications.
6:19 - DCF continues asking about trends in AI data center design, particularly regarding pricing, leasing, and capacity changes over the past few years. Citing how enterprises and service providers are planning for increased capacity requirements due to AI growth, McLean highlights the need for forward-thinking capacity planning due to evolving requirements, increasing workload density, and the introduction of new programs to support higher density requirements.
8:14 - Trends in AI data center design since the industry's ChatGPT inflection point of 2023 are addressed. McLean emphasizes the importance of designing data centers to accommodate mixed densities globally, sustainability considerations, and the need to closely collaborate with clients and partners to meet evolving requirements.
12:20 - McLean discusses the global scale of Digital Realty, emphasizing capacity requirements, major metros, emerging markets like Frankfurt, and the growth of the platform across various regions.
15:06 - DCF Editor in Chief Matt Vincent directs the conversation toward the topic of power, highlighting its significance in the data center industry and asking McLean about aspects related to renewables, the grid, and onsite powering options.
15:45 - McLean elaborates on the importance of sustainability for digital realty, emphasizing the company's efforts to work with municipalities, support a greener world, and address power concerns globally, including plans for future expansion into markets such as India and Africa.
17:42 - DCF acknowledges the critical link between sustainability, AI, and power issues, prompting McLean to reiterate the company's commitment to supporting a sustainable world and navigating the balance between local needs and economic growth.
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Matt Vincent
A B2B technology journalist and editor with more than two decades of experience, Matt Vincent is Editor in Chief of Data Center Frontier.