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What is AI data center management? Uses, software, and examples

AI data center management uses machine learning to run cooling, power, hardware, and workloads. How the software works, real results, and AI data centers.

Editor: Natasha Merchant

Updated October 2026

AI data center management is the use of machine learning to monitor, predict, and control the systems that keep a data center running: cooling, power, hardware health, and where workloads run. Software reads thousands of sensor readings, predicts how the facility will respond to a change, and recommends or applies the best change within safety limits. The same phrase also describes managing AI data centers, the GPU-dense facilities built to train and run AI models.

Those two meanings now overlap. AI data centers draw more power per rack than the facilities before them. The International Energy Agency projects that data center electricity use will more than double by 2030, to about 945 terawatt-hours, with AI as the main driver. Inside an AI data center, the heat load also rises and falls with the jobs running on its accelerators. Setpoints an engineer fixed once are a poor fit for a building whose load moves that much.

This content was generated with the assistance of AI. Our AI prompt chain workflow is carefully grounded and preferences .gov and .edu citations when available. All content is reviewed by a Telnyx employee to ensure accuracy, relevance, and a high standard of quality.

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What is AI data center management?

AI data center management adds a layer of models that learn how one specific facility behaves, above the fixed operating rules that stay in place underneath. A conventional data center runs its cooling plant on setpoints an engineer chose, and its data center infrastructure management (DCIM) software watches power, temperature, and space against alarm thresholds. That setup reports problems well. It does not predict them, and it cannot work out which of thousands of possible settings would run the building most efficiently.

Power usage effectiveness (PUE), the standard efficiency measure, is a facility's total energy use divided by the energy its IT equipment uses, so 1.0 would mean every watt went to computing. In 2014, Jim Gao trained a neural network on a data center's own operations data. The model predicted the facility's power usage effectiveness to within 0.004, or 0.4% error at a PUE of 1.1. A model that fits that closely can simulate proposed changes, within the range of conditions its training data covers, before anyone touches the plant.

That layer usually sits on top of the systems a facility already runs rather than replacing them. It reads sensor data from the DCIM software and the building management system (BMS), which supervises the controllers that run cooling and power equipment. It sends its recommendations or setpoints back through the BMS, which keeps its own limits.

AI is not the same thing as data center automation. Automation runs a predefined workflow, such as provisioning a server or applying a configuration, the same way every time. AI decides what should change, based on what the data says will happen. Most deployments combine the two: a model chooses the action, and automation carries it out.

How AI data center management software works

AI data center management software runs a loop: collect sensor data, predict the result of possible actions, choose the action that best meets the goal within safety limits, apply it, and measure what happened. DeepMind's cooling system works that way. Every five minutes it takes a snapshot of the cooling system from thousands of sensors, and its neural networks predict how different combinations of actions would change future energy use. It picks the actions that use the least energy while meeting a set of safety constraints, and the data center's local control system checks those actions before applying them.

The AI data center control loop that runs every five minutes: thousands of sensors measure the cooling system, a model predicts energy use for combinations of actions, the chosen action passes safety constraints and is checked by the local control system, and the action changes the plant before the sensors measure again, with operators supervising and able to leave AI control at any time.

The same loop runs in two modes. In recommendation mode, the software proposes changes and operators decide whether to apply them. In control mode, the software applies changes itself and operators supervise. DeepMind's system started in recommendation mode in 2016 and moved to direct control in 2018, after the operators said that applying the recommendations by hand took too much effort. Under direct control, deliberately kept to a narrower operating range for safety, it delivered cooling energy savings of around 30% on average within months, and its results improved as it gathered more data.

A second published approach shows the model does not need years of history. Nevena Lazic and colleagues described a reinforcement learning agent that started with little prior knowledge. In a few hours of exploration, it learned a model of how a server floor responds to its fans and water valves. It then used that model for model-predictive control, choosing each action by forecasting its effect. It safely regulated temperature and airflow on the floor more efficiently than the existing controllers. Those were PID controllers, the standard feedback rule that adjusts output based on the current error, its accumulated history, and its rate of change.

How AI is used in data centers

AI is used in data centers mainly to cut cooling energy, predict hardware failures, place workloads where power and cooling can carry them, and spot security anomalies. Cooling usually comes first, because it is a large share of the electricity bill that software can change without touching the servers.

Cooling and energy

Cooling takes about 7% of a data center's electricity in efficient hyperscale facilities and over 30% in less efficient enterprise ones, according to the IEA's analysis of data center demand. In a 2016 trial on a live data center, DeepMind's machine learning recommendations cut the energy used for cooling by 40%. PUE overhead is the part of PUE above 1.0, the energy that goes to anything but computing. Once electrical losses and other non-cooling losses were counted, the 40% cut in cooling energy equaled a 15% cut in that overhead.

The trial ran at a large operator's site that the authors describe as already sophisticated. The 40% is a result for that site in recommendation mode. At a facility with different equipment or a higher cooling share, the saving could be larger or smaller, and we found no comparable published trial at the enterprise end.

Predictive maintenance

Predictive maintenance uses hardware telemetry to flag components likely to fail, so they can be replaced before an outage. Eduardo Pinheiro and colleagues studied a large population of disk drives and found a strong warning sign. A drive's first reallocation, when it remaps a damaged sector, made it over 14 times more likely to fail within 60 days.

The same disk failure study found the limit. Over 56% of failed drives showed no count in any of the four strongest warning signals, so a model built on those signals alone could never predict more than half of the failures. The study measured signals rather than building a model, so its finding is a ceiling: any predictive analytics built on those signals alone inherits it.

Workload placement and capacity

Workload placement uses forecasts of demand to decide where and when jobs run. Published measurements for this use, and for security monitoring, are scarcer than for cooling and maintenance. A model that predicts load and temperature can move flexible work, such as batch training jobs, to the rooms or hours with spare power and cooling, and warn planners before a hall runs out of capacity. The same forecasts feed capacity planning: how much power, cooling, and space to add, and when.

Security monitoring

Security monitoring uses AI to find unusual patterns in network traffic, access logs, and physical sensors, such as a door badge used at an odd hour next to a spike in outbound traffic. Anomaly detection of this kind narrows thousands of events to the few worth a person's attention. It flags candidates; it does not replace the people who decide what they mean.

What is an AI data center?

An AI data center is a data center built to train and run AI models, filled mainly with GPUs and other accelerators rather than general-purpose servers. The IEA reports that AI drives faster deployment of these accelerated servers and raises power density in data centers. In its base case, the electricity use of accelerated servers grows 30% a year, against 9% for conventional servers. More power in each rack means more heat to remove from the same floor space, which is why cooling decides much of an AI data center's design. The AI hardware inside, from GPUs to high-bandwidth interconnects, sets those power and cooling demands.

Location also shapes an AI data center built for real-time inference. For example, Telnyx runs Telnyx Inference on GPUs it owns, in the same data centers as the telephony network that carries its Voice API calls. The audio of each call reaches the models without leaving that network.

How AI data centers are cooled

AI data centers are cooled with air, liquid, or both. Air cooling pushes chilled air through the racks and carries the heat away to cooling units. Liquid cooling circulates coolant through cold plates mounted on the chips, or immerses the hardware in a non-conductive fluid, and removes heat at the source. Liquid carries heat far more effectively than air, so it becomes the practical choice as rack power density rises.

Two ways to cool a data center rack: air cooling pushes chilled air through the racks and carries the heat to cooling units, while liquid cooling circulates coolant through cold plates mounted on the chips into a closed coolant loop, the practical choice as rack power density rises.

AI management applies to either method. The control loop that sets fan speeds and chilled water temperatures in an air-cooled hall can also set coolant flow and supply temperatures in a liquid-cooled one, as long as the sensors exist. Liquid loops add hard limits the controller must respect, such as keeping coolant above the dew point to avoid condensation, holding a minimum flow, and stopping on a leak alarm.

AI data center vs traditional data center

An AI data center differs from a traditional data center in what it computes, how much power it draws per rack, and how it removes heat. A traditional data center runs mostly general-purpose servers for storage, websites, and business applications, at power densities that air cooling handles. An AI data center runs racks of accelerators that draw far more power each, connects them with high-bandwidth networks so they can work as one system, and increasingly uses liquid cooling.

The workloads differ too. Training a large model keeps many accelerators busy for long stretches, a steady and very high load. Serving a model, called inference, follows user demand instead. For real-time uses such as voice AI agents answering phone calls, inference also has to sit near the network that carries the calls, because every extra hop adds delay to each reply.

Management changes with both. An AI data center has more heat to move, tighter margins before equipment throttles, and more expensive hardware sitting idle during an outage. The prediction and control described above matter more there than in a traditional facility.

A traditional data center compared with an AI data center: mostly general-purpose servers for storage, websites, and business applications at power densities air cooling handles, against racks of accelerators on high-bandwidth networks that train and run AI models, draw far more power each, and increasingly use liquid cooling.

Challenges of AI in data center management

AI data center management runs into four limits: missing or unreliable signals, trust, integration with existing systems, and the energy cost of AI itself. The first is signals: a model can only learn from what the sensors report, and sensors drift, fail, or are mislabeled. Some failures give no warning at all: in the disk drive study above, over 36% of failed drives showed nothing in any of the drive health signals the study measured.

The second is trust. A model that controls physical equipment can cause real damage if it is wrong, so production systems keep a person in charge and limit what the model may do. DeepMind's control system uses eight safety mechanisms, and its authors describe three. The model discards actions it has low confidence in. Every action is checked against constraints the operators defined, then again by the local control system. Operators can leave AI control at any time, which hands the plant back to its usual rules.

The third is integration with existing systems. Building management systems already exchange data over protocols such as BACnet and Modbus, so the obstacle is rarely the protocol. It is which sensor points the BMS actually exposes, who grants an outside system permission to write setpoints, and the vendor work needed to set both up safely.

The last is the energy cost of AI itself. The models that optimize a data center run in data centers too, and the IEA expects AI to be the main driver of data center electricity growth through 2030. Savings in cooling offset part of that growth; they do not remove it.

Frequently asked questions

How is AI used in data centers?

AI is used in data centers to lower cooling energy, predict hardware failures, place workloads where power and cooling can carry them, and detect security anomalies. The best-documented result is in cooling: DeepMind's machine learning system cut the energy used for cooling a live data center by 40% in a 2016 trial.

What is an AI data center?

An AI data center is a facility built to train and run AI models, filled mainly with GPUs and other accelerators. It draws more power per rack than a traditional data center, so it needs more cooling capacity, often liquid cooling, and high-bandwidth networks that let its accelerators work together.

Is a data center the same as an AI data center?

A data center is not automatically an AI data center. Every AI data center is a data center, but a traditional data center runs mostly general-purpose servers at power densities air cooling can handle. An AI data center is designed around accelerators, higher power density, and the cooling and networks they require.

How are AI data centers cooled?

AI data centers are cooled with air, liquid, or a mix. Air cooling moves chilled air through the racks; liquid cooling circulates coolant through cold plates on the chips or immerses the hardware in fluid. Liquid removes heat more effectively, so it is used more as rack power density rises.

Why can't AI data centers be air cooled?

AI data centers can be air cooled up to a point. As more power goes into each rack, air cannot carry the heat away fast enough without very high airflow, so the highest-density AI racks move to liquid cooling, which removes heat directly at the chip.

Do AI data centers use water for cooling?

AI data centers use water for cooling when the facility rejects its heat through evaporation. Liquid cooling moves heat from the chips into a closed coolant loop, which recirculates the same fluid; what happens next decides the water draw. Evaporative cooling towers consume water to carry that heat away, while dry coolers that blow air over the loop use little.

What does AI data center management software do?

AI data center management software collects sensor data from cooling, power, and IT equipment and predicts how the facility will respond to possible changes. It then recommends or applies the change that best meets a goal, such as lower energy use, within safety limits. Operators supervise it and can override it.

Is data center automation the same as AI?

Data center automation is not the same as AI. Automation runs predefined workflows the same way every time, such as provisioning a server. AI decides what should change based on data and predictions. Most AI data center management uses both: the model decides, and automation carries out the change.

Sources

  • International Energy Agency. Energy and AI: executive summary. 2025.
  • International Energy Agency. Energy and AI: energy demand from AI. 2025.
  • Gao. Machine learning applications for data center optimization. 2014.
  • Evans and Gao. DeepMind blog post on machine learning for data centre cooling. DeepMind, 2016.
  • Gamble and Gao. Safety-first AI for autonomous data centre cooling and industrial control. DeepMind, 2018.
  • Lazic et al. Data center cooling using model-predictive control. NeurIPS 2018.
  • Pinheiro, Weber, and Barroso. Failure trends in a large disk drive population. USENIX FAST 2007.
  • Telnyx. How Telnyx fixed voice AI latency with co-located infrastructure.
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