Switch Is Constructing “AI Production Hubs” In Las Vegas

Las Vegas data center operator Switch is growing its significant footprint in Southern Nevada by building a new type of facility known as an "AI factory."
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Las Vegas data center operator Switch is growing its significant footprint in Southern Nevada by building a new type of facility known as an “AI factory.”

Switch is developing a new site near Jones and the 215 Beltway, close to its southwest Las Vegas data centers. Clark County records show plans for two data center warehouses—one about 199,000 square feet, the other around 228,000.

Switch Advances AI Factory Buildout with Densely Powered Facilities Already Under Construction

Construction is already in progress. Jason Hoffman, Switch’s chief strategy officer, told the Las Vegas Review-Journal that the company is building AI factories.

He explained that these facilities are smaller than Switch’s standard Las Vegas data centers but are much more densely equipped with computing power.

Hoffman noted that while traditional data centers primarily store client data using rows of servers and related hardware, engineers specifically build AI factories to run artificial intelligence systems.

These are Switch’s first AI factories in Las Vegas, Hoffman noted, adding that the company is also developing similar facilities in other parts of the country.

Switch’s National Footprint and $11 Billion Acquisition

Founded by CEO Rob Roy, Switch operates data centers in Nevada, Texas, Michigan, and Georgia. Two investment firms acquired the company in 2022 in a deal worth around $11 billion.

Hoffman explained that system architectures from Silicon Valley powerhouse Nvidia heavily influence the design and function of these AI factories.

Nvidia, led by billionaire Jensen Huang, makes AI chips and software and has seen profits soar with rising AI adoption. The company posted $72.9 billion in profit last year, up from $4.4 billion two years earlier, per a securities filing.

AI Factories Are Built to Manufacture Intelligence at Scale

In March, Nvidia called AI factories more than data centers—they “manufacture intelligence at scale.” They manage the full AI pipeline, the company said—from data intake and model training to fine-tuning and large-scale inference.

In May, Nvidia announced plans to build AI factories in Saudi Arabia to help make it a global tech leader.


Read the original article on: Tech Xplore

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