Microsoft signs deal to power data centres with nuclear energy
America’s Three Mile Island energy plant, infamous for the worst nuclear accident in US history, is preparing to reopen after Microsoft signed a 20-year deal to purchase power from the facility. The plant is scheduled to restart in 2028 following upgrades and will supply clean energy to support Microsoft’s growing data centres, especially those focused on AI. The agreement is pending regulatory approval.
Constellation Energy, the plant owner, confirmed that the reactor set to restart is separate from the unit involved in the 1979 accident, which, while not fatal, created significant public fear surrounding nuclear power. This deal represents a revival of interest in atomic energy, driven by increasing concerns about climate change and rising energy needs. The CEO of Constellation described this move as a “rebirth” of nuclear power, highlighting its potential as a dependable source of carbon-free energy.
The plant’s reopening is projected to create 3,400 jobs and add over 800 megawatts of carbon-free electricity to the grid, driving significant economic activity. Although the revival has faced some protests, it underscores a growing trend among tech companies, with Amazon also exploring nuclear energy to meet its expanding energy demands.
NAND flash technology sees major advancements
In 2024, the storage market is seeing notable advancements, especially in NAND flash technology, as key players like Samsung, Micron, and SK Hynix innovate to meet rising demands. Samsung has recently begun mass production of its 9th generation QLC V-NAND, boasting impressive enhancements in bit density and performance. This new model improves data retention and significantly lowers power consumption, addressing the growing need for efficient storage solutions in AI applications. Micron and SK Hynix are also pushing forward with their high-performance SSDs, reflecting a broader trend toward optimising storage for increased data demands.
Micron and SK Hynix are advancing their storage solutions as well, with Micron’s latest SSDs featuring 9th-generation TLC NAND technology that delivers impressive data transfer speeds. Meanwhile, SK Hynix is developing high-performance SSDs tailored for data centres. As the demand for storage continues to surge due to AI applications, there is a growing preference for higher-capacity SSDs, leading manufacturers to prioritise both TLC and QLC technologies in their offerings. This shift reflects the industry’s response to the increasing need for efficient and powerful storage solutions.
Market research forecasts that the demand for AI-related SSDs will surpass 45 exabytes in 2024, with the share of AI SSDs in the NAND flash market expected to grow significantly. Despite facing challenges in the PC and smartphone sectors, NAND flash revenue has risen, driven by strong demand from the AI industry. As companies ramp up production capacity, they are well-positioned to meet the increasing needs of data centres and AI applications. This trend underscores a transformative period for the NAND flash market, reflecting its critical role in supporting advancements in technology.
Lenovo launches AI server production and research in India
Lenovo has announced plans to begin manufacturing AI servers at its plant in Puducherry, southern India, and has opened an AI-focused research and development lab in Bengaluru. The company intends to produce 50,000 AI rack servers and 2,400 GPU servers annually, designed for machine learning and other resource-intensive tasks.
These servers will not only serve local demand but also be exported, according to Amar Babu, Lenovo’s Asia Pacific president. Although no specific investment or hiring targets were disclosed, Lenovo already manufactures laptops, notebooks, and personal computers at the Puducherry plant.
The demand for AI chips has surged following the rise of generative AI in late 2023, with AI hardware expected to capture 12% of the global AI market by 2027. Lenovo, which now earns nearly half its revenue from non-PC businesses, is joining other tech giants like Apple and Dell in boosting production in India, partly to reduce reliance on China.
India has attracted global companies with manufacturing incentives, although Lenovo’s AI server production is not tied to any such scheme. However, its collaboration with Dixon Technologies on PC and Motorola phone production does benefit from these incentives.
Slack to transform into AI-powered work operating system
Slack is undergoing a major transformation as it integrates AI features into its platform, aiming to evolve from a simple messaging service to a ‘work operating system.’ CEO Denise Dresser said Slack will now serve as a hub for AI applications from companies like Salesforce, Adobe, and Anthropic. New, pricier features include AI-generated summaries of conversations and the ability to interact with AI agents for tasks such as data analysis, web searches, and image generation.
This shift follows Salesforce’s 2021 acquisition of Slack and its broader move toward AI-driven solutions. Slack’s AI integration seeks to enhance productivity by offering tools to catch up on team discussions, analyse business data, and create branded content, all within the chat environment. However, questions remain about whether users will embrace and pay for these premium features and how this change aligns with Slack’s core identity as a workplace communication tool.
Concerns around data privacy have also surfaced as Slack leans further into AI. The company faced criticism earlier this year for handling customer data, which was used for training purposes, but maintains that it does not use user messages to train its AI models. As Slack continues integrating AI, it must address growing scepticism around managing and safeguarding data.