A Michigan-based data center and network services provider, 123NET, has completed a significant expansion of its Southfield data center, adding 4 megawatts of power capacity specifically designed for high-density GPU-based workloads. This strategic enhancement is a direct response to the escalating demand for artificial intelligence and machine learning applications, which require substantial computational power and low-latency network connections to function effectively. The expansion positions the facility as a key hub for AI development and deployment in the Midwest, offering a unique combination of advanced infrastructure and robust connectivity.
The newly added capacity at the DC1 facility is engineered to support the intensive power and cooling requirements of modern GPU clusters, which are the backbone of today’s AI and high-performance computing tasks. By integrating both liquid and air cooling systems, 123NET can accommodate a wide range of hardware configurations, from traditional air-cooled servers to the latest liquid-cooled GPU racks. This flexibility, combined with the facility’s on-site access to the Detroit Internet Exchange (DET-iX), provides a compelling value proposition for organizations seeking to optimize their AI workloads by minimizing network latency and data transfer costs. The expansion not only addresses the immediate needs of the market but also anticipates future growth as AI technologies become more deeply integrated into various industries.
Advanced Infrastructure for AI and Machine Learning
The core of the expansion is the 4MW of new power, which is specifically tailored for the high-density nature of GPU clusters. Unlike traditional CPUs, GPUs consume significantly more electricity per rack, and the demands of AI workloads can easily overwhelm older data center designs. Recognizing this, 123NET has engineered the new space with electrical and cooling systems capable of handling these higher densities, ensuring reliable and efficient operation of even the most demanding AI applications. The facility is designed to support both AI inference, the process of using trained models to make predictions, and machine learning training, the process of developing and refining those models. This dual capability allows organizations to house their entire AI workflow under one roof, streamlining development and deployment cycles.
Cooling and Power Redundancy
A critical component of the expansion is the implementation of advanced cooling solutions. The facility now offers both liquid and air cooling options, giving clients the flexibility to choose the most appropriate thermal management strategy for their specific hardware. Liquid cooling, in particular, is becoming increasingly essential for high-density GPU deployments, as it can dissipate heat more effectively than traditional air cooling methods. This not only improves performance and reliability but also enhances energy efficiency. In addition to the advanced cooling, the facility is equipped with redundant power and network infrastructure, ensuring high availability and minimizing the risk of downtime for mission-critical AI workloads.
The Strategic Role of the Detroit Internet Exchange
A key differentiator for the Southfield data center is its integration with the Detroit Internet Exchange (DET-iX), a major peering platform that facilitates the direct exchange of traffic between network operators. Housed within the same facility, DET-iX allows 123NET’s clients to connect directly to a vast ecosystem of networks, including major content providers, cloud services, and internet service providers. This direct peering significantly reduces latency and lowers data transfer costs by eliminating the need to route traffic through third-party carriers. For real-time AI applications, such as autonomous vehicle systems or financial trading algorithms, low latency is paramount, and the direct access to DET-iX provides a significant competitive advantage.
Benefits of On-Site Peering
The on-site availability of DET-iX offers several tangible benefits for organizations with AI and GPU-intensive workloads. First, it enables “free peering,” where networks can exchange traffic without incurring the transit fees typically charged by third-party carriers. This can result in substantial cost savings, particularly for applications that generate large volumes of data. Second, it improves network performance by providing a more direct path to end-users and other interconnected networks. This reduces the number of “hops” that data must traverse, resulting in lower latency and improved application responsiveness. Finally, it enhances network resilience by providing a diverse set of interconnection options, reducing reliance on any single carrier or network path.
Meeting the Growing Demand for GPU Clusters
The expansion of the Southfield data center is a direct response to the “explosive demand” for GPU clusters, as described by 123NET’s CEO, Dan Irvin. This demand is driven by the rapid adoption of AI and machine learning technologies across a wide range of industries, from automotive and manufacturing to healthcare and finance. These technologies require massive parallel processing capabilities, which GPUs are uniquely suited to provide. As organizations increasingly deploy AI models at scale, the need for data centers that can support the power, cooling, and connectivity requirements of large-scale GPU deployments will only continue to grow.
Michigan as a Growing Data Center Market
While not as large as major data center markets like Northern Virginia or Northern California, Michigan is becoming an increasingly attractive location for data center development. The state offers a combination of reliable power infrastructure, extensive fiber optic connectivity, and a skilled workforce. The presence of DET-iX, one of the largest fee-free peering platforms in the world, further enhances the state’s appeal by providing a local interconnection point that reduces the need to route traffic through out-of-state exchanges. As the demand for AI and high-performance computing continues to grow, Michigan is well-positioned to capture a larger share of the data center market, and 123NET’s expansion is a testament to this trend.
Future-Proofing for Continued Growth
The 4MW expansion is not just about meeting current demand; it is also about future-proofing the facility for the continued evolution of AI and high-performance computing. The modular design of the new space allows for further expansion and upgrades as technology advances and client requirements change. By investing in a state-of-the-art facility with a clear path for growth, 123NET is demonstrating its commitment to supporting the long-term needs of the AI and machine learning community in Michigan and beyond. This forward-looking approach ensures that the Southfield data center will remain a leading hub for innovation and technological advancement for years to come.