Adobe StockThe Tesla vs Ford Moment Revolutionising Data Centres
The shift to high-density GPU computing is creating a technological divide that forces a radical redesign of digital infrastructure
November 25, 2025Real Estate
Written by:Jorge Aguinaga
Key Takeaways
- Rack densities have exploded from historical averages of 3-4 KW to nearly 200 KW, driven by AI and GPU requirements.
- Developers are having to redesign projects "in-flight" to accommodate direct-to-chip liquid cooling as air cooling becomes insufficient.
- New customer contracts now frequently demand the flexibility to convert 100% of capacity to liquid cooling within three years.
The speed of technological evolution in the data centre sector is accelerating at an unprecedented rate, creating a widening gap between legacy infrastructure and the needs of the new economy.
While standard rack density hovered around a modest 3 to 4 KW in the first decade of this century, the explosive demand for AI and GPU computing has pushed those densities to nearly 200 KW per rack today.
This massive 50-fold increase represents far more than an incremental update, as it creates a fundamental obsolescence risk for existing infrastructure and establishes a stark divide between the data centres of the past and the high-performance AI factories of the future.
In contrast, new AI infrastructure represents a completely different asset class designed from the ground up to support heavy compute loads, offering potential yields of 15-20% compared to the 10% typically seen in traditional facilities.
Capturing this value requires a facility capable of handling immense power and cooling loads that older buildings simply cannot support, necessitating a complete rethink of engineering standards.
Although the team began with a design based on standard 10 to 12 KW air-cooled racks, the technology shifted so rapidly that they had to change the design in-flight to accommodate direct-to-chip liquid cooling.
This is no longer a niche requirement for the future as current requests for proposals (RFPs) often mandate at least 20% liquid cooling capability from day one, while sophisticated clients frequently insert specific clauses requiring the flexibility to convert the entire facility to liquid cooling within a specific timeframe.
With global power demand expected to surge to 240 gigawatts over the next decade to cater to these technologies, the value of a data centre is no longer defined by its square footage but by its engineering capability to support this new era of high-performance computing.
These strategic insights were shared during the panel discussion on "Investing in Digital Infrastructure - Real Estate in The Changing World Order of The Data Centers Ecosystem".
The session was moderated by Rachit Mohan, APAC Head - Data Center Leasing & India Head - Data Center Transactions, JLL, and featured reflections from leading experts including Aseem Kohli, Director, Varde; Kamlesh Harchandani, CEO -Data Center Business, WAAREE ENERGIES LTD; Manmeet Singh Gulati, Managing Director & Head - South Asia; Real Estate Financing, Standard Chartered; Manoj Semwal, Director, Design Delivery- APAC, Equinix India; Manu Sharma, Chief Financial Officer, Pi DataCenters; and Narendra Sen, Founder & CEO, Rack Bank.
Access the full takeaways and C-level insights in the exclusive India GRI 2025 Spotlight.
While standard rack density hovered around a modest 3 to 4 KW in the first decade of this century, the explosive demand for AI and GPU computing has pushed those densities to nearly 200 KW per rack today.
This massive 50-fold increase represents far more than an incremental update, as it creates a fundamental obsolescence risk for existing infrastructure and establishes a stark divide between the data centres of the past and the high-performance AI factories of the future.
The Tesla vs Ford Moment
During a panel at India GRI 2025, an expert likened this transition to the automotive industry's shift from Ford to Tesla, noting that traditional data centres built on decades-old design principles are akin to legacy manufacturing.In contrast, new AI infrastructure represents a completely different asset class designed from the ground up to support heavy compute loads, offering potential yields of 15-20% compared to the 10% typically seen in traditional facilities.
Capturing this value requires a facility capable of handling immense power and cooling loads that older buildings simply cannot support, necessitating a complete rethink of engineering standards.
Redesigning Projects In-Flight
The pace of change is now so rapid that developers are often forced to pivot strategies mid-construction, with one major operator sharing a telling anecdote about having to drastically alter a project while it was being built.Although the team began with a design based on standard 10 to 12 KW air-cooled racks, the technology shifted so rapidly that they had to change the design in-flight to accommodate direct-to-chip liquid cooling.
This is no longer a niche requirement for the future as current requests for proposals (RFPs) often mandate at least 20% liquid cooling capability from day one, while sophisticated clients frequently insert specific clauses requiring the flexibility to convert the entire facility to liquid cooling within a specific timeframe.
The New Standard for Digital Infrastructure
This shift renders the old retail or enterprise-focused data centre model increasingly challenged because customers are no longer just looking for secure space and basic connectivity, but are demanding facilities that can handle the extreme heat and power density of generative AI.With global power demand expected to surge to 240 gigawatts over the next decade to cater to these technologies, the value of a data centre is no longer defined by its square footage but by its engineering capability to support this new era of high-performance computing.
These strategic insights were shared during the panel discussion on "Investing in Digital Infrastructure - Real Estate in The Changing World Order of The Data Centers Ecosystem".
The session was moderated by Rachit Mohan, APAC Head - Data Center Leasing & India Head - Data Center Transactions, JLL, and featured reflections from leading experts including Aseem Kohli, Director, Varde; Kamlesh Harchandani, CEO -Data Center Business, WAAREE ENERGIES LTD; Manmeet Singh Gulati, Managing Director & Head - South Asia; Real Estate Financing, Standard Chartered; Manoj Semwal, Director, Design Delivery- APAC, Equinix India; Manu Sharma, Chief Financial Officer, Pi DataCenters; and Narendra Sen, Founder & CEO, Rack Bank.
Access the full takeaways and C-level insights in the exclusive India GRI 2025 Spotlight.