Santa Clara, CA – Artificial intelligence may be advancing at breathtaking speed, but the limiting factor is no longer just compute power. It’s infrastructure. At the AI Infra Summit in Santa Clara, executives from NJFX, CoreSite, OpenAI, Actnano, and Cirrascale tackled the pressing challenges of scaling AI responsibly.

The discussion, moderated by Dave Driggers, CEO and CTO of Cirrascale Cloud Services, brought together:

• Gil Santaliz, CEO & Founder of NJFX
• Eric Dela Pena, Director of Sales Engineering at CoreSite
• Reza Khiabini, Member of Technical Staff at OpenAI
• Taymur Ahmad, Founder & CEO at Actnano

Together, they examined how colocation providers, new facility design, and industry standards will define the next stage of AI infrastructure.

By 2026, when NVIDIA’s next-generation chips are released, liquid cooling will no longer be optional—it will be the baseline.

“We’re going to need a new level of density in these facilities—mixing and matching workloads, but with hardened infrastructure,” said Dave Driggers of Cirrascale. “Telcos eventually set those standards; the difference is we have to get there much faster than they did.”

Eric Dela Pena of CoreSite emphasized the collective responsibility: “We’re really going to gain adoption on all of this as a community. We need to settle on what is going to be the standard—and how we come together to build data centers capable of supporting the future of AI workloads.”

Inference Shaping Infrastructure

Inference workloads, unlike training, are highly latency-sensitive. To deliver real-time responses, compute must be pushed closer to users and data sources. This shift is giving rise to Inference Optimal Locations (IOLs).

“Every millisecond matters,” said Reza Khiabini of OpenAI. “You can’t ship inference halfway across the country and expect real-time performance. We need infrastructure close to the edge, near the users.”

Gil Santaliz of NJFX tied this directly to connectivity: “Inference is about connectivity and production data. The ecosystem sits in carrier hotels today, but we have to rethink how those facilities can responsibly support AI workloads.”

Carrier hotels have historically been vital for interconnection, but panelists agreed they are ill-suited for liquid-cooled AI at scale.

These multi-story, multi-tenant buildings face four critical challenges:

• Leak mitigation in shared cooling environments
• Structural load capacity limits for dense racks
• Power density requirements beyond design specs
• Physical and cyber security vulnerabilities

Santaliz used a memorable analogy: “If you own a home, you control everything. But if you live in a condominium, you share centralized systems and must be mindful of your neighbors. That’s the reality of multi-tenant infrastructure.”

Some operators are tethering expansions to existing facilities to buy time. But panelists stressed the limits of this approach.

Taymur Ahmad of Actnano warned of risks that cannot be ignored: “Cooling introduces challenges like condensation and leaks. If you don’t design with protective technologies, you risk outages that no operator wants to face.”

Driggers added: “You can’t build production AI on stopgaps. Tethering may help in the short term, but it’s not the long-term solution.”

The Path Forward: Purpose-Built, Connectivity-Rich Facilities

The future of AI infrastructure lies in purpose-built facilities designed for density, liquid cooling, and direct interconnection.

“We can support three or four unique requests; no one can handle 10 or 20,” said Santaliz. “We start customers at a megawatt and let them grow. It’s a boutique approach—doing an exceptional job for a few, not trying to be everything for everyone.”

Panelists agreed that North America will require next-generation AI facilities in four key regions:

• Northeast – to serve the main population corridor
• Southeast – close to fast-growing population hubs
• Southwest – balancing hyperscale demand and edge growth
• Northwest – providing resiliency and redundancy

“Liquid cooling should be the standard,” Ahmad added. “But at the edge, we may also need custom approaches. The design has to fit the workload and location.”

AI Entering Production Mode

The panel closed with a clear message: AI is no longer in the experimental stage—it is entering production mode.

“AI has left the lab,” said Driggers. “This is about scaling production workloads, and that means scaling infrastructure in a way that hasn’t been done before.”

Santaliz reinforced the point: “Inference is about connectivity, production data, and working with the masses. That’s why colocation providers matter more than ever.”

The conversation in Santa Clara underscored a turning point: AI is no longer just a software story—it’s an infrastructure story.

Cooling, density, and connectivity will define the winners. And colocation providers—once seen as landlords—are emerging as strategic partners in enabling AI’s future.

As the panel made clear, the future of AI will be written not just in code, but in concrete, steel, fiber, and water.

A New Wave in Cloud Infrastructure

The data center industry is entering a new era. For years, hyperscalers dominated the market, offering massive, centralized compute power that fueled global enterprises and cloud-native applications. But now, Neo Clouds are emerging—specialized providers engineered to support the exponential demand for AI, HPC, and ultra-low latency workloads.

Unlike traditional hyperscalers that built scale on broad utility services, Neo Clouds are optimized for density, performance, and agility. And in doing so, they may become the first real competition hyperscalers have seen in over a decade.

How Neo Clouds Redefine Compute Resource Deployment

Here’s how Neo Clouds distinguish themselves in their approach to compute resource deployment:

• High-Density Compute: Unlike hyperscalers that operate with standard 8–12kW racks, Neo Clouds like Flexential design their data centers for much higher power densities—often 50kW or even up to 200kW per rack in extreme cases.

• Liquid Cooling: Such density necessitates advanced cooling solutions beyond traditional air cooling. Direct-to-chip and immersion liquid cooling are becoming standard to manage the immense heat output of these systems.

• Custom Hardware Integration: Neo Clouds integrate specialized hardware like GPUs and TPUs, directly addressing the performance needs of AI and ML applications.

• AI-First Architecture and Orchestration: Unlike general-purpose hyperscaler environments, Neo Clouds design their infrastructure, networking, and orchestration layers specifically for AI workloads, ensuring superior performance and efficiency.

• Bare-Metal Access: Leading Neo Clouds like Voltage Park emphasize bare-metal GPU access, removing virtualization overhead and offering better performance and predictability for specialized workloads compared to virtualized hyperscaler models.

Competition or Complement to Hyperscalers?

Hyperscalers are known for scale and ecosystem reach. However, hyperscaler footprints aren’t always optimized for latency-sensitive, high-power workloads. Enterprises looking to train or deploy large models face constraints when pushing beyond 12kW racks in legacy cloud facilities.

Neo Clouds are filling this gap, offering AI-ready colocation and compute clusters that hyperscalers often can’t deliver with the same speed or specialization. While they may not replace hyperscalers outright, Neo Clouds are carving out a new category: specialized competition at the high-performance layer of the cloud stack.

Why This Matters for Data Centers

The rise of Neo Clouds signals a fundamental shift in how data centers need to evolve:

• Power Density as the New Currency: Where once interconnection and resiliency were the core differentiators, megawatts of GPU-ready power per hall is now the key metric.

• AI as the Anchor Tenant: Just as hyperscalers reshaped the industry by becoming the anchor tenant of the last decade, AI-native cloud operators could drive the next wave of growth.

• Strategic Location Matters More: Facilities near subsea cables and financial hubs are especially attractive for Neo Clouds, enabling global connectivity and real-time performance.

Conclusion: The Next Chapter of Cloud Competition

The emergence of Neo Clouds highlights a turning point in digital infrastructure. As enterprises demand compute that is denser, faster, and more adaptable, the market is shifting away from one-size-fits-all hyperscale models.

For data centers, the question is no longer just about space and power—it’s about who can provide the densest racks, the lowest latency, and the most direct connectivity to AI workloads. In this landscape, Neo Clouds are not just disruptors; they’re redefining what the future of cloud looks like.

At NJFX, we’re meeting this demand head-on with a 9MW AI-ready data hall, purpose-built for high-density deployments. By combining subsea and terrestrial interconnection with liquid-cooled infrastructure, NJFX offers the environment Neo Clouds and AI-native workloads require to thrive.

Extreme weather events like hurricanes pose significant threats to the telecommunications sector, where uninterrupted connectivity is critical for businesses, emergency responders, and communities. A robust preparedness plan ensures that telecom operators can minimize downtime, protect assets, and safeguard public safety.

Purpose and Scope
This guide provides a structured approach for hurricane preparedness in telecommunications, covering risk assessment, infrastructure protection, operational response, and recovery strategies.

Objectives

• Minimize service interruptions during hurricanes
• Protect critical infrastructure and data
• Ensure safety and readiness of staff
• Maintain communication continuity for stakeholders

Stakeholders Involved
Preparedness requires coordination between network operators, data center managers, subsea and terrestrial fiber providers, government agencies (OEM, FEMA, local police/fire), customers, and the broader community.

I. Preparation Phase

A. Risk Assessment & Planning

• Identify critical assets (cable landing stations, data centers, towers, subsea systems).
• Conduct =vulnerability analysis for structural, environmental, and geographical risks.
• Establish communication dependencies, including PACE (Primary, Alternate, Contingency, Emergency) plans and succession protocols.

B. Infrastructure Protections

• Fortify facilities with windproofing, flood barriers, and elevated systems.
• Ensure backup power redundancy with generators, UPS, and fuel reserves.

C. Data and System Backup

• Schedule regular backups to cloud-based platforms.
• Validate backup integrity to avoid corrupted or inaccessible data during crisis.

D. Staffing & Training

• Define roles within the Emergency Action Plan.
• Conduct hurricane-specific drills.
• Maintain a communication priority list to streamline decision-making.

E. Communication and Coordination

• Establish channels with local authorities, utilities, and emergency services.
• Pre-notify personnel and stakeholders of plans.
• Coordinate with fiber operators and providers to align response actions.

F. Inventory & Equipment

• Maintain an updated inventory of spare parts and repair tools.
• Pre-position critical hardware and portable power sources.

II. Response Procedures

A. Monitoring & Alerts

• Track weather developments through official channels.
• Activate internal alerts once hurricane watches/warnings are issued.

B. Activation of Emergency Operations

• Follow activation protocols for team mobilization and asset reinforcement.
• Support staff life-safety needs with 72-hour resource reserves.

C. Communication Management

• Use redundant communication systems (satellite, radio, mesh).
• Provide real-time updates to customers and stakeholders.

D. Infrastructure Management

• Secure and shut down non-essential systems.
• Assign ops teams for rapid-response repairs.

E. Data Integrity & Security

• Safeguard data accessibility.
• Monitor for cyber vulnerabilities during outages.

III. Recovery Procedures

A. Damage Assessment

• Inspect infrastructure post-storm, documenting impacts for insurance and regulatory purposes.
• Prioritize restoration of critical network pathways.

B. Restoration of Services

• Coordinate with subsea and terrestrial partners for fast repair.
• Restore power, cooling, and connectivity in phases.

C. Post-Event Review

• Conduct debriefings to evaluate response effectiveness.
• Capture lessons learned and refine plans.

D. Communication & Reporting

• Provide transparent updates to stakeholders.
• Share service restoration timelines and resilience improvements.

IV. Continuity Planning

• Implement alternate routing and failover systems.
• Establish off-site backup operations in case of primary site compromise.
• Maintain updated emergency contact lists (Wall PD, FD, NJSP, OEM, FEMA).

Lessons from Other Disasters: Wildfire Preparedness in Telecom

While hurricanes dominate East Coast concerns, wildfires have presented parallel risks to telecom infrastructure. For example, a recent wildfire near the Pine Barrens threatened towers supporting mobile and internet services. As flames advanced, operators rerouted traffic through alternative networks to reduce outages.

Despite these efforts, some communities still experienced temporary blackouts—limiting access to evacuation alerts and emergency notifications. This underscored the need for redundant systems, fireproof infrastructure, and emerging mesh technologies that can maintain connectivity even when physical assets are compromised.

Similar to hurricane planning, wildfire preparedness requires proactive measures: clearing vegetation near facilities, equipping sites with portable power, and ensuring staff safety. Both scenarios emphasize one key truth: telecom resilience is public safety resilience.

Hurricane preparedness in the telecom sector is not optional—it is mission-critical. By investing in robust infrastructure, planning for contingencies, and learning from other disasters like wildfires, operators can safeguard networks that millions rely on for communication, safety, and stability.

Resilient critical infrastructure is the backbone of modern society. As weather patterns grow more unpredictable, preparation ensures continuity when it matters most. See below on how to prepare and stay safe.

At NJFX, we’ve always believed that building a stronger telecommunications industry means investing in the people who will carry it forward. For the past nine years, nurturing the next generation has been part of our mission by providing students and young professionals the chance to gain real-world experience in operations, security, sales, and marketing.

We have had the privilege of mentoring 10 exceptional interns who have gone on to flourish in their careers. Each has taken the knowledge and opportunities gained at NJFX and applied them to exciting new chapters in the IT, telecom, and enterprise space.

Today, on International Interns Day, we proudly celebrate their journeys:

Sales & Business Development

JP Merkler – Interned under Felix Seda, focusing on sales and business development strategies → Now at Goldman Sachs

Sarah Kurtz – Also a sales/BD intern under Felix, later hired full-time at NJFX as Business Development & Marketing Associate, and eventually became a mentor → Now at Cloudflare

Amanda Kadunce – Mentored by Sarah Kurtz during her internship in sales/BD → Now at QTS

Site Access, Security & Compliance

Spencer Nowak – Focused on accounting and security while helping develop compliance assessment tools with our Site Access team → Currently completing his degree and interning at Orangewood Partners

Tiffany Antonelli – Worked on site security and developed tools to help ensure our facility met high government compliance standards → Now an Intelligence Analyst with the NJ State Police

Michael Beekman – Participated in site and compliance support, with a focus on investigative practices → Now a Senior Anti-Money Laundering Investigator at Standard Chartered

Engineering & Operations

Olivia Braunstien – Served as an engineering intern and later found her passion in brand and technical marketing → Now Marketing Manager at BD

Dylan Braunstien – Operations intern who gained exposure to data center processes and customer handling → Currently interning at Fiserv

Marketing & Strategy

Taylor Khan – Supported by Emily Newman during her marketing internship, worked on digital campaigns and event planning → Now part of Verizon’s professional development program

Alex Sokol – A high school student who interned at NJFX to explore both marketing and operations. He learned firsthand the intricacies of managing a premier interconnection hub → Continuing studies, with a deepened passion for digital infrastructure

Why NJFX Supports Internships and the Next Generation 

Beyond our own program, NJFX has worked to extend this mission to the broader telecom community. Eight years ago, we helped launch the Millennials in Telecom initiative at PTC, recognizing that the industry needed to create more intentional opportunities for young professionals to break in, be heard, and find their place.

What started as an informal gathering has since evolved into the PTC Beyond Committee, an official initiative that gives students and early-career professionals free access to the Pacific Telecommunications Council’s annual conference in Honolulu. This platform allows emerging leaders to meet with senior executives, ask questions, explore cutting-edge topics, and build connections that can shape their futures.

For NJFX, the motivation has always been clear: today’s interns are tomorrow’s innovators, network architects, cybersecurity experts, and decision-makers. By creating a hands-on, meaningful internship experience and amplifying that effort through broader industry platforms, we’re helping to ensure that the future of telecommunications is not only technically strong but also diverse, inclusive, and future-ready.

As we celebrate National Interns Day, we reaffirm our commitment to uplifting the next generation and continuing to be a gateway for future leaders in the world of connectivity.