As artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) continue to reshape industries, the infrastructure supporting these technologies is under unprecedented pressure. From training expansive AI models to running real-time inference workloads, the infrastructure demand for more power, advanced cooling and low-latency connectivity has turned the data center industry on its head.
Hyperscale data centers, operated by cloud giants and built for centralized, large-scale AI training, often dominate industry headlines. However, colocation data centers are increasingly favored for their distributed power, cooling, and connectivity offerings by organizations seeking support for low-latency, high-density computing and the ultimate benefit ... control.
AI workloads are not only compute-intensive, they’re also dynamic. Training models require massive parallel processing, while inference workloads demand low-latency responses in real time. This dual pressure means infrastructure must be powerful and agile. Examples of high-density workloads include:
Without the right infrastructure and systems support, these workloads can suffer from performance degradation, increased costs, and delayed innovation.
AI workloads—especially training and inference—require dense compute clusters that can draw anywhere from an average 60kW to 100kW or more per rack. Traditional server rooms, often designed for lower power densities, face serious limitations in cooling, space, and energy provisioning. As a result, enterprise IT teams are forced to make tradeoffs between performance, scalability, and speed-to-market. Some of the most pressing challenges include:
To understand what this looks like in practice, let’s examine two real-world case studies from our roster of enterprise customers that modernized their infrastructure with data center colocation strategies engineered for next-generation workloads.
A leader in electronic design automation (EDA) offering SaaS platforms and lab solutions for chipmakers faced a common scalability issue: modernizing infrastructure to support emerging technologies and legacy systems without disrupting service to its global customer base. With surging demand for high-performance compute and aging infrastructure, the company sought a solution to enable scalability, reduce operational risk, and unlock new service capabilities.
This customer tapped Centersquare’s expertise to design a tailored colocation strategy that addressed immediate and long-term needs. The solution included tailored power models with multiple configurations—primary, redundant, and tertiary—to ensure continuous uptime; a phased rollout plan to smoothly integrate legacy systems with new platforms; and flexible commercial terms to support cost-effective growth. This approach expanded data center capacity while maintaining a seamless user experience for their customers.
By leveraging Centersquare’s high-density colocation capabilities, the EDA leader positioned itself for scalable growth and continued innovation in the competitive silicon design space. The infrastructure expansion was completed ahead of schedule, on budget, and with zero service disruptions. The modernization initiative also allowed our customer to accelerate service deployment, attract new business, and mitigate risks associated with legacy systems. You can read the full case study here.
A leading cloud solutions provider specializing in GPU workloads faced surging demand for AI and machine learning capabilities. The company needed to rapidly scale its infrastructure to support NVIDIA H100 GPU deployments, meet aggressive regional expansion goals, and deliver high-performance compute environments without compromising reliability or speed.
To meet these challenges, the provider turned to Centersquare for a high-density colocation solution. The deployment was a collaborative effort between Centersquare’s engineering team and the customer’s technical staff, resulting in a purpose-built environment optimized for AI training and inference. Key features included advanced cooling and thermal management systems designed for GPU density, Infiniband networking architecture for ultra-low latency, and a 100% power availability SLA to ensure uninterrupted operations.
The outcome was a seamless, on-time deployment in a high-demand region, enabling the provider to expand its GPU capacity and service offerings. The infrastructure delivered the scalability needed for future AI workloads and helped accelerate revenue growth. Most importantly, the solution enhanced customer satisfaction and retention by providing reliable, high-performance compute environments tailored to the evolving demands of AI. Get the full case study now.
High-density colocation data centers are engineered to meet the demands of modern workloads with scalable, high-performance environments that deliver the power, cooling, and connectivity needed to run compute-intensive applications with confidence. But organizations are scrambling for space because many other data centers are at, or near to, full capacity.
In addition, not all colocation data center providers can meet the power demand created by AI and high-density workloads. However, at Centersquare, we are prepared to meet this demand due to pre-contracted utility power in reserve in key metros, proactive allocation of utility power, and continuous reinvestment across our footprint. Additional Centersquare high-density colocation solutions include:
These capabilities make high-density colocation a strategic advantage for organizations that need to move fast, think big, and innovate continuously.
The future of AI and data-driven innovation depends on da ta centers and colocation solutions that can scale with demand. Colocation data centers that can deliver advanced power and cooling, plus low-latency connectivity is a long-term enterprise strategy for staying ahead of the curve.
Centersquare’s colocation data centers are purpose-built to support the most demanding workloads in AI, machine learning, and high-performance computing. With advanced cooling systems, scalable power architectures, and carrier-neutral connectivity, Centersquare delivers environments optimized for high-density compute. Customers benefit from liquid cooling capabilities up to 125kW per rack, redundant power configurations, and pre-negotiated utility contracts that enable rapid provisioning in key metros.
In addition to technical excellence, Centersquare offers operational reliability and compliance assurance. Every facility is backed by a 100% uptime SLA, with remote hands support and certifications including SOC 1, SOC 2, ISO 27001, and NIST 800-53. These features make Centersquare a trusted colocation data center partner to support mission-critical workloads, enabling enterprise customers to scale confidently and innovate without compromise. Click here to learn more about how we support AI and xPU workload requirements.
Dallas-based Centersquare is a preeminent colocation provider with a proven track record of providing highly reliable data center services. Prioritizing security, reliability and superior customer service, the company offers flexible data center solutions backed by a 100% uptime guarantee for thousands of diverse organizations across all industries. Centersquare is one of the largest privately held data center operators in North America, and in September 2025 it was named #11 on Data Centre Magazine’s Top 100 Data Centre Companies list.
Additional resources
Info Sheet: Colocation Overview
Info Sheet: High-Density Workloads
Explore: Connectivity You Can Count On
Blog: The Future of AI Hangs on Colocation Data Centers: Here’s Why