Digital Realty CRO Colin McLean Talks Oracle Collaboration, Data Centers' AI Evolution

This May, Digital Realty (NYSE: DLR) announced a collaboration with Oracle to accelerate the growth and adoption of artificial intelligence (AI) computing among enterprises. For this episode of the Data Center Frontier Show podcast, we asked Digital Realty Chief Revenue Officer Colin McLean to expand on key points of his company's AI data center design and implementation efforts in light of the new partnership with Oracle.

In their announcement, Oracle and Digital Realty said their new strategic collaboration aims to develop hybrid integrated solutions that "address data gravity challenges, expedite time to market for enterprises deploying next-generation AI services, and unlock data and AI-based business outcomes."

We also asked McLean about how he's seen the trend lines for data center pricing, leasing and capacity changes over the past 5-6 years of the cloud industry, compared to roughly the past year of AI growth since he's been CRO for Digital Realty.

Here's a timeline of the interview's key moments:

 0:32 - Data Center Frontier asks McLean to elaborate on the salient points of AI data center design in light of Digital Realty's partnership with Oracle. McLean explains the significance of the partnership, emphasizing how it addresses the challenges of managing high-density workloads in AI and data-intensive applications.

6:19 - DCF continues asking about trends in AI data center design, particularly regarding pricing, leasing, and capacity changes over the past few years. Citing how enterprises and service providers are planning for increased capacity requirements due to AI growth, McLean highlights the need for forward-thinking capacity planning due to evolving requirements, increasing workload density, and the introduction of new programs to support higher density requirements.

8:14 - Trends in AI data center design since the industry's ChatGPT inflection point of 2023 are addressed. McLean emphasizes the importance of designing data centers to accommodate mixed densities globally, sustainability considerations, and the need to closely collaborate with clients and partners to meet evolving requirements.

12:20 - McLean discusses the global scale of Digital Realty, emphasizing capacity requirements, major metros, emerging markets like Frankfurt, and the growth of the platform across various regions.

15:06 - DCF Editor in Chief Matt Vincent directs the conversation toward the topic of power, highlighting its significance in the data center industry and asking McLean about aspects related to renewables, the grid, and onsite powering options.

15:45 - McLean elaborates on the importance of sustainability for Digital Realty, emphasizing the company's efforts to work with municipalities, support a greener world, and address power concerns globally, including plans for future expansion into markets such as India and Africa.

17:42 - DCF acknowledges the critical link between sustainability, AI, and power issues, prompting McLean to reiterate the company's commitment to supporting a sustainable world and navigating the balance between local needs and economic growth.