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Nvidia GTC panelists on Wednesday discussed how the growth of data centers and Internet-connected technologies is creating various opportunities for the manufacturing and construction industries.
Between 2010 and 2018, global data center workloads and virtualized computing resources increased sixfold as organizations moved away from smaller data rooms to larger, more efficient data centers in the cloud, according to a 2020 report in Science magazine.
In addition, a 2023 Deloitte report noted that the average US household has 13 types of devices and 21 connected devices. Items like thermostats, smart watches, blinds and dishwashers are now connected devices, requiring data storage to house the information generated by smart devices, said Josh Levi, president of the trade group, Data Center Coalition.
In addition, the use of artificial intelligence and machine learning has increased the workload of data centers, with some facilities dedicated solely to these systems, which Levi expects to continue to grow and have an economic impact.
Manufacturers have been integrating artificial intelligence into their operations, including product design, shop floor and supply chain management, according to a new report released Wednesday by the National Association of Manufacturers. Manufacturing Roadmap to AI and Energy Dominance.
For example, prominent companies are Belden, Lucid Motors, Taiwan Semiconductor Manufacturing Co., Caterpillar and Foxconn Industrial Internet using Nvidia’s Omniverse technologies to accelerate AI-powered manufacturing.
In addition, Foxconn and Fanuc use Omniverse library technology to connect to their robotics. In addition, Foxconn is using Omniverse technologies to design, simulate and upgrade its 242,287-square-foot facility in Houston to manufacture Nvidia’s AI infrastructure systems.
About 51 percent of manufacturers currently use AI, 60 percent plan to install AI in their operations by 2027, and about 80 percent said the technology will be vital to growing or sustaining their businesses by 2030, according to NAM survey results.
“I think a lot of people don’t think of AI as manufacturing or manufacturing processes,” said Jay Timmons, CEO and President of NAM. “The truth is that all forms of technology over the decades have started with manufacturers and we drive it.”
Component manufacturing and adaptation opportunities
Direct employment in the US data center market grew more than 50% from 2017 to 2023, according to the Data Center Coalition. economic contribution report with the consulting firm PwC, published in February. In addition, the total annual contribution to employment of the data center industry increased by 60% during the same period, from 2.9 million jobs to 4.7 million jobs.
Levi added that the people who build the data centers and who manufacture and install the equipment inside the facilities represent additional economic benefits.
The electrical equipment manufacturing segment has invested heavily in the data center market, spending approximately $185 billion upgrading and expanding US operations since 2018. according to an infographic of the National Association of Electrical Manufacturers.
The electrical industry is also one of the largest markets in the country, valued at $375 billion.
NEMA company members are also looking to manufacture more data center components, such as wiring, cables, motors and transformers, as well as establish supply chains in the U.S., CEO and President Debra Phillips said.
“These are national security assets,” Phillips said. “You think about transformers, you think about critical minerals, those materials will go into the electrical products that are part of the data center space.”
Don Slaiman, political coordinator for International Brotherhood of Electrical Workers Local 26, said the union has found that nearly 25 percent of its construction in the data center market involves retrofitting as its members upgrade and improve electrical infrastructure.
“The evolution of what is placed in these data centers changes so quickly,” Slaiman said. “So we got manufacturing, maintenance, construction and modernization. So it’s a gift that keeps on giving to workers.”
What’s at stake?
There were about 409,000 manufacturing job openings in August, and that number is expected to reach 3.8 million by 2033. according to NAM.
“What we’re going to see is that manufacturing jobs are going to require a different skill set, and we’re going to need people who understand how to use this technology to make us safer, to make us more efficient and to make our operations faster,” Timmons said.
However, that could increase based on fiscal policy, regulatory modernization or energy infrastructure, Timmons said.
In addition, panelists urged lawmakers to take steps to strengthen the AI market and US energy infrastructure, as data centers and artificial intelligence take up about 60% of electricity on average. according to the International Energy Agency. The NAM report noted the push by members to enable reform of infrastructure construction and energy products, as well as to streamline AI, energy and grid projects.
Levi adds that stabilizing the supply chain is important and ensuring the market has the equipment and raw materials available for manufacturers and others to build and continue innovation.
“We have manufacturers working in partnership with end-user data centers to continue to innovate and develop new manufacturing capabilities in major data center markets,” said Levi.
