Colocation Providers Expanding Into High-Density AI Hosting

Use Case Overview

Colocation providers are under pressure to evolve from traditional 5–15 kW racks to modern AI-ready infrastructure supporting 50–250+ kW per rack. Legacy electrical rooms, cooling loops, and white space designs can’t meet these requirements without costly renovations.

AGI enables colo providers to rapidly deploy high-density pods, containerized data halls, or modular expansions that integrate seamlessly into existing facilities. This allows providers to tap into AI demand without disrupting current customers or reworking their entire footprint.

Project Objectives

This project is designed to help colocation providers introduce AI-ready, high-density capacity alongside existing facilities—without disruptive renovations or downtime for current customers.

Add High-Density Capacity Without Renovations

Deploy modular halls outside existing buildings while interconnecting with current electrical feeds.

Improve Cooling Efficiency

Use MTCS to centralize heat removal and avoid expensive CRAC/CRAH upgrades.

Maintain Uptime Commitments

Ensure Tier III / Tier IV reliability through redundant cooling and electrical systems.

Support AI Leasing Models

Provide enterprise customers with 250 kW+ rack options without lengthy construction.

Reduce Risk & Construction Complexity

Factory-built assemblies remove the need for invasive on-site installation.

Expand Capacity in Phases

Scale from 2 MW → 16 MW → 48 MW per campus as leasing demand grows.

Key Benefits

With modular expansions that tie into existing power and operations, colocation providers can unlock new AI revenue streams, improve utilization of their campuses, and deliver premium high-density services at hyperscaler-grade reliability.

  • No downtime for existing customers during expansion.
  • Turns unused land or parking lots into revenue-generating GPU space.
  • Easy integration with existing colo operations teams.
  • Higher margins from AI workloads compared to traditional racks.
  • Faster time-to-revenue via 3–6 month deployment cycles.

Conclusion

Colocation providers can instantly enter the high-density AI hosting market without retrofitting aging facilities. AGI’s modular, high-density-ready systems unlock new revenue streams, support heavier workloads, and future-proof their campuses.