Switch to Build New AI Factories in Las Vegas

Categories: Business NewsConstructionNewsTechnology

Artist's impression of the AI factories being built by Switch in Las Vegas.

News Summary

Switch, a major data-center operator, is expanding its presence in Las Vegas by constructing new AI factories. Located near existing data centers, the two facilities will focus on powering sophisticated AI systems rather than traditional data storage. This development marks a significant milestone for the local tech infrastructure and is expected to enhance the economic landscape of Las Vegas, attracting further investment in the technology sector.

Las Vegas is set to witness an expansion in its technological landscape as Switch, a prominent data-center owner, moves forward with plans to construct new AI factories in the region. This project is located at the southwest corner of the Jones Boulevard–215 Beltway interchange in southwest Las Vegas Valley, strategically situated near Switch’s existing cluster of data centers.

The new AI factories will feature two main facilities; one will encompass approximately 199,000 square feet, while the other covers around 228,000 square feet. Construction is currently underway, marking a significant development in the local tech infrastructure.

According to Jason Hoffman, the chief strategy officer at Switch, these AI factories are designed to differ from more traditional data centers. Although smaller in size, they are engineered to be more densely packed with computing power. Unlike typical data centers, which focus on housing servers and equipment for clients’ data storage, the newly proposed AI factories aim to power sophisticated artificial intelligence systems.

This marks Switch’s inaugural venture into the Las Vegas market with AI factories, adding to the circuit of similar projects the company is developing across the United States. Founded by CEO Rob Roy, Switch operates various data centers in states including Nevada, Texas, Michigan, and Georgia. In a significant financial shift, the company was acquired in 2022 by two investment firms for approximately $11 billion.

The design of the AI factories is heavily influenced by systems from Nvidia, a Silicon Valley tech giant known for its specialization in chips and software for artificial intelligence. Nvidia has seen substantial financial success recently, reporting nearly $72.9 billion in revenue during its last fiscal year, a notable rise from about $4.4 billion just two years ago. This impressive growth underscores the increasing reliance and investment in AI technology.

Nvidia has characterized AI factories as advanced facilities that not only process vast quantities of data but also “manufacture intelligence at scale.” These factories are equipped to manage the entire AI lifecycle, from data ingestion and training to high-volume inference. In keeping with this trend, Nvidia announced its plans for establishing AI factories in Saudi Arabia earlier this year, aiming to elevate the nation’s status as a significant player in the global artificial intelligence field.

The establishment of Switch’s AI factories in Las Vegas represents a pivotal shift in the local technology sector, reflecting broader trends in the industry where demand for AI capabilities is surging. As technology continues to evolve, these developments are likely to attract further investments and innovations in the Southern Nevada region, enhancing its reputation as a burgeoning tech hub.

In conclusion, the construction of these AI factories is expected to contribute significantly to the local economy and bolster Las Vegas’s standing within the tech industry. As the landscape continues to evolve with such innovative projects, it will be essential to monitor the impact and growth this new endeavor brings to the area.