As artificial intelligence shifts from experimental to essential, the demands placed on modern infrastructure are undergoing a seismic transformation. For example, in the arena of power alone, Goldman Sachs Research forecasts global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade.
As power demands continue to rise, so does the heat generated by modern infrastructure. Traditional air-cooling methods commonly used in data centers are no longer sufficient to meet the thermal challenges of AI workloads. To keep pace, liquid cooling is increasingly becoming a necessary addition or replacement for traditional cooling solutions, offering the efficiency and performance required to support next-generation systems.
Celestica enables hyperscalers, enterprises, and cloud service providers to build AI infrastructure with scalable, sustainable, and intelligent solutions from the nodes to the rack to the data center and beyond.
Why AI is Forcing a Rethink of Traditional Infrastructure
- The rise of AI/ML data center networking and computing is fundamentally changing the role of infrastructure in the data center. Traditional systems optimized for general-purpose workloads are no longer sufficient. AI workloads demand:
- Massive data throughput and low latency to support distributed training and inference operations
- High-performance computing architectures that can scale across multiple GPU/accelerator nodes
- Specialized networking and storage platforms optimized for east-west traffic and parallel data movement
- Reliable and redundant power and thermal management systems that ensure continuous uptime and efficiently meet the high energy demands of modern data centers
- Advanced telemetry and monitoring capabilities that provide real-time insights into energy consumption and infrastructure loads, helping prevent downtime and optimize performance
As enterprises recalibrate for the AI era, they are moving beyond legacy systems to adopt data center infrastructure solutions purpose-built for AI and architected from the ground up for performance, resilience, and efficiency.
Celestica sets itself apart in this market through the strengths of its integrated design, engineering, and testing capabilities, all housed under one roof. AI solutions now begin at the ASIC/chip level and extend up the stack to include custom nodes and blades, which then evolve into purpose-built racks featuring optimized power, cooling, and connectivity. This comprehensive approach ensures the solution is precisely aligned with the customer’s business objectives. Delivering this level of customization requires deep expertise in how each layer interconnects to form a seamless, cohesive ecosystem.
Challenges in Scaling Compute: Power, Latency, and Thermal Constraints
AI data centers push physical infrastructure to its limits. The sheer power density of next-generation GPUs, accelerators, and high-performance CPUs is creating unprecedented challenges across several dimensions:
- Energy demand: AI workloads are energy-intensive and highly variable, with training a single model consuming megawatts of power. This requires the next-generation power infrastructure to adapt to the dynamic nature of AI loads, with customized solutions that support unique demand profiles and ensure stability.
- Thermal constraints: Traditional air-cooling is no longer sufficient. High-density AI racks require advanced thermal management systems, such as liquid cooling and hybrid thermal approaches, to maintain operational efficiency and avoid thermal throttling. Data center operators have been witnessing fundamental technology leaps in liquid cooling technologies. Single-phase and dual-phase liquid cooling technologies are key solutions for managing the increasing thermal loads. Single-phase cooling circulates a liquid coolant that absorbs the heat without changing state, offering reliable and efficient thermal management. Dual-phase cooling, on the other hand, leverages the coolant’s phase change from liquid to vapor to achieve higher heat transfer efficiency, making it ideal for more demanding applications. Market trends show growing adoption of both technologies as data centers evolve to support AI, HPC, and edge computing workloads, with dual-phase solutions gaining traction for their superior cooling performance and energy efficiency.
- Latency and networking bottlenecks: Data must move at machine learning speed. Addressing east-west latency and memory bandwidth limitations is critical to unlocking full AI performance. This demands cutting-edge data center networking technologies and data center open compute power solutions built for AI/ML workflows.
In this new paradigm, organizations need infrastructure partners that understand the complexity and urgency of building scalable, efficient AI compute environments.
Celestica’s Role in Enabling Scalable, AI-Ready Platforms and Infrastructure
Celestica stands at the center of this infrastructure evolution. As a trusted complete product lifecycle solutions partner supporting the most complex products across multiple markets, Celestica delivers AI-ready solutions that bring together performance, flexibility, and efficiency at a global scale.
Networking, Storage, and Compute
As a market share leader in 800G high-speed interconnects, Celestica supports advanced AI/ML data center networking and compute needs. Our switching platforms deliver the high-bandwidth and low-latency performance critical to modern AI architectures. From PCIe expansion to NVLink topologies, our compute and storage platforms are optimized for data movement at scale.
Full-Rack Integration Capabilities
We offer complete rack integration services, from engineering and design to configuration, validation, and logistics. Our integrated rack solutions are designed to meet diverse AI needs, from hyperscale AI data centers to high-density enterprise environments. We combine compute, storage, networking, and thermal technologies to provide highly customized solutions. This reduces time-to-value and simplifies operational complexity.
High-Reliability Power and Energy Management Systems Beyond the Rack
As a leader in power electronics, with deep expertise in design and manufacturing of complex power solutions, we partner with Hyperscalers, OEMs, and Data Center operators to ensure your data center runs without interruption.
We leverage our market knowledge and engineering expertise to design and deliver scalable, power solutions across the data center infrastructure ecosystem. From control panels, battery energy storage systems, energy generation, uninterruptible power supplies, power distribution units, switchgears to motor drives and metering that meet rigorous industry standards and certifications, Celestica provides peace of mind and a more sustainable and efficient operation.
Thermal Management
Celestica delivers thermal management systems tailored to the high-heat profile of AI accelerators, including liquid cooling solutions in data centers and advanced airflow and containment systems.. Our engineers co-design solutions with silicon partners to maximize performance within the tight thermal envelopes required for dense deployments.
Celestica has deep partnerships and knowledge on designing rack-level and data center-level thermal solutions, including Cooling Distribution Units (CDUs), cold plates, and manifolds. Our advanced CDU designs have helped our hyperscaler customers optimize their data center thermal footprints.
In-row and in-rack CDUs offer unique advantages. In-row CDUs are installed between several racks, providing centralized cooling that efficiently manages heat for multiple racks with high capacity and easier maintenance. The in-row CDUs require dedicated floor space and many involve more complex infrastructure.
In-rack CDUs are integrated directly into individual racks, offering targeted cooling with a smaller footprint and simplified deployment. This makes them ideal for edge or high-density setups. Their limitation lies in lower overall cooling capacity and potentially higher maintenance complexity across many racks. Choosing between the two depends on factors like data center layout, cooling demands, and scalability requirements.
Powering the Data Center with Intelligent Infrastructure
Celestica brings deep expertise in enabling efficient, reliable, and high-performance power management infrastructure, a critical foundation for modern data centers. We offer a full spectrum of manufacturing, design, joint design, and circular services solutions tailored to power delivery, storage, and thermal systems that support AI and high-density compute. Our capabilities include:
- Advanced custom power designs, including intelligent energy storage, telemetry, and redundancy for uptime-critical environments
- A global footprint that ensures consistent product designs, regional compliance, and rapid deployment across key markets
- Competitive lead times and cost structures, enabled by our integrated supply chain and design-led approach
- A proven track record of delivering high-reliability systems that scale with evolving data center demands
Flexibility and Speed-to-Deployment
Unlike traditional manufacturers, Celestica operates with the agility and depth of an ODM. We collaborate with hyperscalers and AI leaders to co-design solutions from the silicon level up, delivering custom platforms optimized for next-generation compute.
Our end-to-end product lifecycle capabilities—from design and prototyping to system integration, global logistics, and lifecycle services—enable us to bring new data center platforms to market faster than traditional models. This agility is especially critical in fast-moving AI deployment cycles and in supporting power infrastructure designed to handle the high-intensity loads of modern AI workloads.
Sustainability and Circular Economy: Modular, Sustainable Design Approaches
Celestica’s commitment to sustainability extends far beyond energy efficiency. Through our Lifecycle and Circular Services, we help customers extend product life, minimize waste, and create value throughout the infrastructure lifecycle.
- ODM-led Modular Platforms: Our AI-ready systems are built with modularity in mind, enabling easier upgrades, longer system life, and reduced electronic waste. These designs support data center infrastructure management goals focused on both performance and environmental responsibility.
- Energy-Aware Designs and Materials: We select materials and system architectures based on energy efficiency, recyclability, and reduced embodied carbon, key to building data center infrastructure that supports enterprise sustainability targets.
- Circular Services: Celestica’s circular services include asset tracking, recovery, reuse, and repair, helping customers achieve a lower total cost of ownership while reducing landfill waste.
- IT Lifecycle Services and ITAD: Our full suite of IT lifecycle services includes IT asset disposition (ITAD), remanufacturing, and asset recovery, enabling secure, compliant, and sustainable decommissioning of retired infrastructure.
- Logistics and Depot Services: Celestica offers global logistics, depot services and onsite white glove data center services to manage spare parts, repair cycles, redeployments, and deinstallations, supporting operational continuity and reducing the environmental footprint of infrastructure management.
Your Strategic Partner in Scalable AI Innovation
As AI reshapes the digital landscape, the infrastructure supporting it must evolve with equal speed and intelligence. From silicon to systems, Celestica delivers the scalable, sustainable, and high-performance platforms that power AI-driven transformation across the data center and beyond. Whether you're re-architecting for dense compute, exploring advanced thermal solutions, or looking to optimize infrastructure lifecycle value, Celestica is your strategic partner in building what’s next.
Explore how Celestica can accelerate your AI infrastructure strategy today.