Artificial Intelligence

Why AI’s Biggest Infrastructure Problem May No Longer Be Computing Power

Huawei is betting that the future of AI infrastructure will depend as much on energy systems as on computing power

Updated

May 19, 2026 5:43 PM

Blue light painting with a lightbulb. PHOTO: UNSPLASH

As AI companies build larger models and deploy more AI agents, the industry is running into a new constraint: electricity. The challenge is no longer just about computing power. It is increasingly about how to supply, manage and sustain the energy needed to run AI infrastructure at scale.

That was the central argument behind Huawei’s latest AI data center strategy unveiled at its Global AIDC Industry Summit in Dongguan.

The company introduced what it calls a grid-interactive AIDC strategy, focused on redesigning AI data centers around power supply, cooling systems and energy management. AIDC refers to AI data centers built specifically for large-scale AI computing workloads.

The announcement reflects a broader shift happening across the industry. As AI systems grow larger, data centers are consuming more electricity and generating more heat than traditional computing infrastructure was designed to handle. Companies are now being forced to rethink not just chips and servers, but the physical systems supporting them.

Huawei argues that future AI infrastructure will need closer coordination between computing systems and energy grids. The company says traditional data center designs are struggling to keep up with fluctuating AI workloads, rising power density and the growing use of renewable energy sources.

Hou Jinlong, Director of the Board of Huawei and President of Huawei Digital Power, said: "The booming AI industry, widely adopted large models, and numerous AI agents are creating huge energy demands, set to boost the global AIDC capacity. Electricity is essential for computing; energy is the foundation for AI long-term development. Computing and electricity will deeply synergize and empower each other, progressively building an integrated framework that brings together new power systems and AI infrastructure."

A large part of Huawei’s strategy focuses on power architecture. AI workloads can create sudden spikes in electricity demand, especially in high-density computing environments. To manage that, Huawei says it plans to develop new power systems that combine grid-friendly UPS infrastructure with energy storage technologies.

Cooling is becoming another major pressure point. AI servers generate significantly more heat than traditional enterprise systems and Huawei says liquid cooling is now becoming essential for large-scale AI deployments. The company introduced a liquid cooling system designed to improve long-term thermal management inside high-density AI environments.

Huawei is also pushing modular construction methods to reduce deployment times for AI data centers. Instead of building infrastructure entirely onsite, parts of the system can be prefabricated and tested in factories before installation.

Bob He, Vice President of Huawei Digital Power, said: "The global AI industry is booming, and the token demand surges. As such, the AIDC industry is entering the Token era."

As part of that shift, Huawei introduced a proposed measurement system called the TokEnergy Index. The company says the metric is designed to measure the relationship between energy consumption and AI computing output, rather than relying only on traditional data center efficiency metrics such as PUE.

The broader message behind the strategy is that AI infrastructure is becoming an energy engineering problem as much as a computing problem. As global demand for AI continues to rise, companies across the sector are beginning to realise that the future of AI may depend not only on better models, but also on whether power grids and data centers can keep up with them.

Keep Reading

Strategy & Leadership

Overcoming Barriers to Digital Fluency in the Workplace

The new workplace literacy is here, and it’s digital.

Updated

January 8, 2026 6:36 PM

Vintage beer pong posters showcasing colorful, diverse designs from different eras in one collection.

A group of office worker attending a presentation in a meeting room. PHOTO: UNSPLASH

The modern workplace is powered by technology, and success increasingly depends on how well employees can use it. Digital fluency—the ability to confidently and effectively use digital tools to achieve goals—is no longer a bonus skill; it’s a necessity. It goes beyond basic technical know-how, encompassing the ability to adapt to new technologies, integrate them into workflows, and use them to solve problems and drive innovation.

Yet, despite its importance, many organizations struggle to build digital fluency across their teams. Barriers such as limited access to technology, outdated training programs, resistance to change, and gaps in leadership support often stand in the way. These challenges can leave businesses lagging behind competitors who are better prepared to leverage the potential of the digital age.

Understanding and addressing these barriers is critical for creating a workforce that thrives in today’s fast-changing world. Below, we explore the key obstacles to digital fluency and provide actionable strategies to overcome them.

Common barriers to digital fluency
1. Outdated training practices

One of the challenges to digital fluency is the gap between the technology available and employees’ ability to use it effectively. Technology evolves rapidly, but many organizations lag behind in providing relevant, up-to-date training. Employees may receive a one-time introduction to new tools but lack ongoing opportunities to build confidence or master advanced features.

This issue is compounded by the fact that training often takes a one-size-fits-all approach, failing to address the diverse skill levels within a workforce. For example, while some employees may only need a basic overview of a tool, others may require in-depth knowledge to integrate it into their roles effectively. Without tailored and continuous training, even the most advanced tools can go under utilized, leading to frustration and resistance.

2. Resistance to change

Even with proper training, employees may hesitate to adopt new technologies. Resistance to change is a deeply rooted challenge that goes beyond technical skills—it’s tied to fear of failure, skepticism about the value of new tools, or discomfort with disrupting existing workflows.

For example, employees who have been using the same systems for years may feel overwhelmed by the idea of learning something new. They may worry that new technologies will complicate their work rather than simplify it. In some cases, they may even feel their jobs are threatened by automation or digital tools.

This resistance isn’t limited to employees—it can also exist at the leadership level. If leaders themselves are hesitant to adopt new approaches, it creates a top-down culture that stifles innovation.

3. Fragmented adoption across teams

The lack of organizational alignment is another significant barrier. Digital tools often roll out unevenly across departments, leading to fragmented adoption. For instance, one team might embrace a new project management tool, while another continues to rely on spreadsheets. This inconsistency creates silos, disrupts collaboration, and makes it harder for organizations to achieve the full benefits of digital transformation.

Generational differences can further exacerbate this issue. Younger employees, who are often more comfortable with technology, may adopt new tools quickly, while older employees may struggle to keep up. This divide can lead to frustration on both sides and uneven levels of digital proficiency across the organization.

4. Lack of leadership support

Leadership plays a critical role in driving digital transformation, but in many organizations, this support is inconsistent or absent. Some leaders fail to prioritize digital fluency as a strategic initiative, while others may not fully understand the tools themselves, making it difficult to set an example for their teams.

Without clear direction from leadership, employees may not see digital fluency as a priority. This lack of alignment can lead to half-hearted adoption, where technology is seen as an optional add-on rather than a fundamental part of the organization’s success.

Why these barriers matter

These barriers don’t exist in isolation—they are deeply interconnected. For example, outdated training practices can fuel resistance to change, while fragmented adoption across teams is often a symptom of weak leadership support. Together, they create a cycle that limits an organization’s ability to adapt, innovate, and thrive in a fast-changing world.

Addressing these challenges is critical for building a workforce that is confident, capable, and ready to embrace the future. By breaking down these barriers, organizations can unlock the full potential of their teams and position themselves for long-term success.

Strategies for building digital fluency
1. Make training tailored, ongoing, and accessible

Training should not be an afterthought or a one-time event—it must be a continuous and personalized process. Employees come with diverse skill levels, and a one-size-fits-all training program often fails to address these differences. Organizations should adopt a multi-pronged approach to training, offering workshops for hands-on learners, e-learning modules for self-paced learning, and one-on-one coaching for employees who need more targeted support.

For example, companies like AT&T have invested heavily in workforce retraining initiatives, providing employees with a structured path to build digital skills overtime. These programs not only improve employee confidence but also help organizations fully leverage their digital tools.

Moreover, training programs should evolve to keep up with technological advancements. Employees need regular refreshers to stay current, as even the most advanced tools can become obsolete or under utilized without proper guidance. By making training a core part of the organizational culture, companies can empower employees to adapt to new tools with ease and confidence.

2. Foster a culture of experimentation

Resistance to change is a major barrier to digital fluency, often fueled by employees’ fear of failure or inefficiency when using new tools. To address this, organizations should foster a culture where employees feel safe experimenting with technologies in low-stakes environments, such as “sandbox environments” that allow for practice without affecting real workflows. When employees are encouraged to test new tools and processes in a low-stakes environment, they become more comfortable with technology over time.

Recognizing and rewarding employees who embrace new tools or suggest innovative ways to use them reinforces this mindset. Early adopters can serve as champions for digital fluency, encouraging others to engage with and explore new technologies.

By normalizing experimentation, organizations can shift employees from resisting change to confidently adopting digital tools as opportunities for growth.

3. Align teams through collaboration

To avoid fragmented adoption, organizations must ensure that digital tools are implemented consistently across teams. This requires clear communication, cross-departmental collaboration, and alignment on how tools will be used to achieve shared goals.

Mentorship programs can help bridge generational divides, pairing younger employees with older colleagues to share knowledge and skills.

4. Lead by example

Leaders play a pivotal role in overcoming barriers to digital fluency. They don’t just drive the adoption of digital tools—they shape how employees perceive and engage with them. When leaders actively embrace technology, they demonstrate its value and set a standard for others to follow.

Leadership involvement must go beyond symbolic gestures. Employees are far more likely to adopt new tools or processes when they see their leaders using them effectively in day-to-day work. For example, a manager who uses a team collaboration platform to streamline communications or leverages data visualization tools in meetings signals the practical benefits of these technologies. This hands-on engagement builds trust and encourages others to follow suit.

Equally important is leaders’ ability to connect digital tools to broader organizational goals. Employees need to understand how these tools contribute to solving real problems, improving workflows, or driving innovation. When leaders clearly communicate the "why" behind digital initiatives, it helps employees see digital fluency as a shared mission rather than an abstract directive.

Conclusion

Digital fluency isn’t just about mastering tools—it’s about creating a workplace where adaptability, curiosity, and collaboration thrive. It’s about empowering employees to see technology not as a hurdle but as an opportunity to innovate, grow, and solve problems in new ways.

At its heart, digital fluency is a shared effort, requiring leaders who inspire, teams that align, and cultures that embrace experimentation and learning. When organizations commit to breaking down barriers—whether through better training, stronger leadership, or fostering collaboration—they unlock the full potential of their people and their tools.

The future belongs to organizations that don’t just adopt technology but embed it into their culture, enabling their teams to thrive in an ever-changing digital landscape. The question now is not whether we can keep up with change, but how far we can go when we embrace it fully.