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Silicon Flash > Blog > Edge Computing > Advancements in AI Technology: The Rise of Smaller Data Centers
Edge Computing

Advancements in AI Technology: The Rise of Smaller Data Centers

Published February 18, 2026 By Juwan Chacko
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Advancements in AI Technology: The Rise of Smaller Data Centers
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EPRI, NVIDIA, Prologis, and InfraPartners have announced a collaborative effort to establish smaller distributed data centers ranging from 5-20MW closer to utility substations with available grid capacity. The purpose is to enable AI inference processing in real-time at the source of data, reducing grid congestion and utilizing underutilized resources effectively.

At least five pilot sites will be established in the U.S. by the end of 2026, serving as a scalable model for future expansion.

Marc Spieler, senior managing director for the Global Energy Industry at NVIDIA, emphasizes the transformative impact of AI on data center infrastructure. By deploying accelerated computing resources near available grid capacity, stranded power can be unlocked to facilitate efficient AI inference processing. This approach, supported by NVIDIA’s accelerated computing technology, optimizes existing energy assets to drive innovation across industries.

The integration of computing capabilities at substations enhances grid resiliency, improves system flexibility, and streamlines the integration of renewable energy sources.

EPRI contributes technology expertise in research validation and site selection, Prologis offers insights in land site assessment and commercialization, NVIDIA provides GPU-accelerated computing platforms, and InfraPartners deploys data center infrastructure.

In response to the rising demand for AI inference in sectors like logistics, healthcare, and finance, this partnership aims to deliver high-speed, reliable, and location-specific computing power.

This decentralized approach leverages existing energy resources, alleviates transmission bottlenecks, and supports the evolution of energy systems. The project highlights the need for innovative infrastructure solutions to meet the evolving requirements of energy and AI technologies.

Related

AI inference | edge AI | EDGE Data Centers | edge infrastructure | EPRI | InfraPartners | Nvidia | Prologis

See also  Revolutionizing Data Center Connectivity: Cisco's Game-Changing Silicon One Chip and Router for AI

TAGGED: Advancements, Centers, data, rise, smaller, technology
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