Artificial intelligence (AI) is transforming industries worldwide, and New York City is emerging as a critical player in this revolution. With the launch of the New York City Artificial Intelligence Action Plan, the city is committed to leveraging AI to improve the quality of life for its residents and maintain its status as a global innovation hub.
In particular, financial institutions and leading businesses in New York are pioneering generative AI. Many are initiating small-scale projects to test and refine these technologies within the city’s dynamic ecosystem. This localized approach allows businesses to experiment with AI while minimizing risks, with plans to scale these innovations to more cost-effective regions once proven successful. New York’s unique position as a testing ground provides a strategic advantage in AI development.
However, full AI integration into everyday business operations is still a work in progress. The path forward requires careful planning and execution, allowing AI’s transformative potential to be responsibly harnessed while maintaining a balance between technological advancement and human-centric values.
AI ventures shape the future of NYC
New York City ranks second in the US for AI venture capital, raising over $27 billion since 2019 and employing over 40,000 individuals in the AI workforce. It's unsurprising, given the potential of generative AI to boost productivity and gross domestic product (GDP) growth.
According to McKinsey & Company, generative AI has the potential to automate up to 29% of work hours in the city's economic market by 2030, impacting 12 million workers and handling 2.4 billion hours of tasks.
Additionally, following a "people-centric" generative AI integration or emphasizing augmentation over displacement can add $320 billion to New York State's economy by 2038. These figures demonstrate AI's transformative role in driving economic growth, reshaping the labor market, and fostering innovation in one of the world's leading cities. As a result, the AI data center demand is rising, impacting power consumption.
Generative AI integration in New York City
New York City businesses can benefit from high-density IT deployments, enabling them to process high-performance computing (HPC) workloads within a smaller footprint. Companies will likely implement generative AI integration by situating critical data center loads within the city to reduce latency and improve data processing through proximity to operational hubs.
These installations are typically small-scale, high-density setups with advanced power and cooling features. This is necessary because real estate in New York City is costly, so businesses need to maximize the use of limited space. These setups serve as proof-of-concept projects used to test and demonstrate the feasibility of new applications and solutions. By doing this locally, businesses can evaluate the performance and benefits of these technologies in a real-world environment. Once confident in the results, they can expand these technologies to locations outside the city, such as New Jersey or Virginia, where real estate and operational costs are lower.
Considerations for adopting generative AI workloads
New York City businesses can incorporate generative AI workloads by considering key factors and optimizing their infrastructure for reliable and efficient operations.
- Enhance IT power solutions
Operators can enhance IT rack power density with advanced power distribution units (PDUs) that convert higher voltages like 480 volts (V) to 415 V, supporting AI workload demands. Once power is supplied, they manage GPU load fluctuations with advanced UPS systems.
Enterprises can explore microgrid installations and battery energy storage systems (BESS) deployments to address New York City's power supply challenges while complying with carbon emission restrictions.
These decentralized solutions can provide a stable power backup, allowing organizations to maintain a steady power supply despite grid issues. The concept of "bring your own power" (see Figure 1) is gaining traction as businesses seek reliable sources for their high-demand generative AI applications.
Figure 1. Adhering to the BYOP concept, a dynamic or hybrid power energy ecosystem can reduce a data center’s vulnerability to an unstable grid by combining multiple energy sources and streamlining storage, distribution, and contingency mechanisms.
- Optimize cooling with chilled water systems
Due to space constraints, most enterprises in New York City use chilled water systems rather than air cooling technologies to remove server heat. For AI integration, infrastructure teams can leverage chilled water onsite for liquid cooling deployments by installing coolant distribution units (CDUs).
- Accelerate AI deployment
Vertiv has designed a strategy for businesses implementing AI, focusing on integrating data center infrastructure. This includes power, cooling, and IT systems combined into a unified solution tailored to the specific needs of high-density applications. The strategy emphasizes collaboration with engineering firms on design, helping owners grasp the process and aiding contractors in acquiring the necessary resources.
Additionally, Vertiv introduces Vertiv™ 360AI, a holistic approach that offers everything from connectivity and distribution to implementation and ongoing expert maintenance services. This allows comprehensive support for AI deployments from inception to completion, and it can adapt and scale solutions for small-scale applications in locations like New York and larger installations.
Choose your path to high density
Adopting advanced technologies and infrastructure strategies is crucial for enabling scalability and operational efficiency in data centers, as AI-driven workloads and increasing power densities will require meeting future demands. To maintain high performance and energy efficiency in these evolving environments, businesses must optimize critical systems, such as power distribution and thermal management.
Vertiv provides engineered solutions specifically designed for high-density computing. Whether building new facilities or upgrading existing ones, Vertiv can design and implement precision cooling systems, such as liquid cooling or variable-speed air cooling, to enhance thermal efficiency and capacity management. These customized solutions allow your data center to handle AI workloads reliably while minimizing downtime and energy costs, enabling seamless scalability for future growth. Engage with industry experts and witness these innovations firsthand at the AI Solutions Roadshow.
Advance your data center's capabilities to support high-density computing with confidence. Regardless of your current infrastructure or future objectives, Vertiv provides tailored solutions designed to optimize your data center for AI demands.
