“At the same time, we expect existing enterprise customers who are building AI into their products and operating models will expand their power and space requirements in CoreSite with its flexible and scalable model and speed to market benefits, is already well positioned to support these expected used cases today.”

In context

“the record new business we've signed over the last year and a half. This is all before factoring in expectations for elevated demand from AI used cases. While much of the immediate demand in the market today is coming from hyper scale requirements, the longer term opportunity for interconnection hub like CoreSite, is just as significant and is arising from several key demand drivers. First, we've already seen an acceleration in outsourcing to CoreSite as hybrid IT and multi cloud access are becoming more relevant for continued digital transformation across all workloads. As enterprises increasingly leverage new generative AI models for business and customer applications, they'll need to deploy servers that require more power and cooling than on premises data centers can typically handle. At the same time, we expect existing enterprise customers who are building AI into their products and operating models will expand their power and space requirements in CoreSite with its flexible and scalable model and speed to market benefits, is already well positioned to support these expected used cases today. Second, we're seeing today's cloud enabled large language models requiring connections to proprietary distributed datasets use for training, which CoreSite as an interconnection ecosystem with a nationwide distribution of cloud on-ramps is well situated to serve. And finally we see a significant incremental opportunity arising from the use of hybrid and custom large language models for training and inferencing where low latency, high power density and distributed high performance compute is expected to result in elevated activity across our existing CoreSite campus footprint. Over time, we see a potential for these dynamic requirements to push demand for a more distributed compute infrastructure for which our CoreSite portfolio and ultimately our distributed footprint of land parcels on”