SUMMARY: We explore one of the most overlooked bottlenecks in the AI boom: energy and infrastructure and why power availability is becoming the limiting factor.

GUEST: Wannie Park, Founder/CEO of PADO AI

SHOW: 1026

SHOW TRANSCRIPT: The Reasoning Show #1026 Transcript

SHOW VIDEO: https://youtu.be/satMQRxKQC8

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SHOW NOTES:

1. AI’s Hidden Constraint: Power

AI growth is no longer limited only by GPUs and compute
Power generation, cooling, and grid interconnects are emerging as major bottlenecks
Data centers could account for 10–12% of North American power demand in coming years

2. Why Data Centers Are Being Reimagined

Traditional data centers were built for enterprise IT, not AI-scale workloads
AI infrastructure introduces:
- Massive power density needs
- Advanced cooling challenges

3. The Grid Wasn’t Built for AI

Utilities are designed around peak demand scenarios
Most grids run well below peak capacity most of the time
AI workloads create volatile and unpredictable consumption patterns
Long interconnection timelines are pushing companies toward alternative infrastructure models

4. GPU Utilization Is Surprisingly Low

GPU clusters are often underutilized because of:
- Scheduling inefficiencies, Cooling limitations, SLA constraints
- Effective GPU utilization may be as low as 12–13% in some environments

5. Cooling as a Major Optimization Layer

Legacy data centers often cool entire zones inefficiently
Pado AI aligns
AI workloads, Cooling systems, Power allocation
Workload-aware orchestration helps optimize cooling and compute efficiency

6. The Rise of “Compute Forecasting”

Pado forecasts compute demand instead of energy demand
The platform models:
- GPU workloads, Power consumption, Cooling requirements, SLA priorities
- Goal: maximize “compute per megawatt”

7. AI Workloads Become Time-Aware

AI providers may increasingly:
- Shift workloads to off-peak periods
- Incentivize delayed non-urgent jobs
- Dynamically balance compute demand
- Users are already seeing variable inference latency in real-world AI systems

8. Sustainability vs Reliability vs Profitability

Operators must balance:
- Uptime expectations, Infrastructure costs, Sustainability goals
- Renewable adoption is growing, but reliability still drives investment in natural gas and battery-backed systems

9. Brownfield vs Greenfield Opportunities

Pado AI is focused primarily on existing (“brownfield”) data centers
Existing enterprise infrastructure can often be extended and optimized instead of rebuilt
Enterprises may gain significant AI capability without hyperscale GPU deployments

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