US data center operator TECfusions has penned an AI infrastructure commitment deal with TensorWave described as “one of the largest” capacity agreements ever made for AI compute.
The deal will see TensorWave lease 1GW of AI capacity from TECfusions’ data center portfolio, with the deployment expected to begin in early 2025.
As part of the agreement, Tecfusion said it will leverage its on-site power generation capabilities to provide reliable services aimed specifically at AI-intensive applications.
"Watershed moment"
In a statement confirming the move, Shawn Novak, Chief Revenue Officer of TECfusions, described the collaboration as a “watershed moment in the AI infrastructure landscape.”
"TECfusions' Clarksville data center, already home to one of the world's largest GPU clusters, is a testament to TECfusions' industry-leading infrastructure for the most demanding AI applications and showcases our capability to handle TensorWave's extensive capacity requirements,” he added.
The collaboration will also help drive regional data center energy stability, according to the firm, as well as sustainable growth.
TECfusions said the strategy aims to both provide reliable power for AI workloads, which are energy-intensive, but also drive long-term reductions in energy costs.
Data center energy consumption has skyrocketed in recent years since the advent of generative AI, with the power-hungry technology placing significant strain on data center infrastructure amidst surging enterprise AI adoption rates.
Darrick Horton, CEO of TensorWave, said the agreement will provide “unparalleled energy independence” and drive the scalability of TensorWave’s AI infrastructure initiatives.
"As a company that specializes in providing AMD Instinct Series GPUs (MI300X and MI325x), TECfusions' rapid deployment model is a game-changer for us,” he said.
“Their ability to bring massive AI-ready capacity online in months rather than years significantly accelerates our time to market to support our customers. This partnership is crucial for maintaining our competitive edge in the fast-paced AI sector."
Moving forward, TECfusions will conduct a phased capacity deployment and a “significant portion” of the 1GW power capacity will be made available by early 2025. According to TensorWave, this phased approach coincides with anticipated demand for the year ahead.
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