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.

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Artificial Intelligence

Algorized Raises US$13M to Advance Real-Time Safety Intelligence for Human-Robot Collaboration

A new safety layer aims to help robots sense people in real time without slowing production

Updated

March 17, 2026 1:02 AM

An industrial robot in a factory. PHOTO: UNSPLASH

Algorized has raised US$13 million in a Series A round to advance its AI-powered safety and sensing technology for factories and warehouses. The California- and Switzerland-based robotics startup says the funding will help expand a system designed to transform how robots interact with people. The round was led by Run Ventures, with participation from the Amazon Industrial Innovation Fund and Acrobator Ventures, alongside continued backing from existing investors.

At its core, Algorized is building what it calls an intelligence layer for “physical AI” — industrial robots and autonomous machines that function in real-world settings such as factories and warehouses. While generative AI has transformed software and digital workflows, bringing AI into physical environments presents a different challenge. In these settings, machines must not only complete tasks efficiently but also move safely around human workers.

This is where a clear gap exists. Today, most industrial robots rely on camera-based monitoring systems or predefined safety zones. For instance, when a worker steps into a marked area near a robotic arm, the system is programmed to slow down or stop the machine completely. This approach reduces the risk of accidents. However, it also means production lines can pause frequently, even when there is no immediate danger. In high-speed manufacturing environments, those repeated slowdowns can add up to significant productivity losses.

Algorized’s technology is designed to reduce that trade-off between safety and efficiency. Instead of relying solely on cameras, the company utilizes wireless signals — including Ultra-Wideband (UWB), mmWave, and Wi-Fi — to detect movement and human presence. By analysing small changes in these radio signals, the system can detect motion and breathing patterns in a space. This helps machines determine where people are and how they are moving, even in conditions where cameras may struggle, such as poor lighting, dust or visual obstruction.

Importantly, this data is processed locally at the facility itself — not sent to a remote cloud server for analysis. In practical terms, this means decisions are made on-site, within milliseconds. Reducing this delay, or latency, allows robots to adjust their movements immediately instead of defaulting to a full stop. The aim is to create machines that can respond smoothly and continuously, rather than reacting in a binary stop-or-go manner.

With the new funding, Algorized plans to scale commercial deployments of its platform, known as the Predictive Safety Engine. The company will also invest in refining its intent-recognition models, which are designed to anticipate how humans are likely to move within a workspace. In parallel, it intends to expand its engineering and support teams across Europe and the United States. These efforts build on earlier public demonstrations and ongoing collaborations with manufacturing partners, particularly in the automotive and industrial sectors.

For investors, the appeal goes beyond safety compliance. As factories become more automated, even small improvements in uptime and workflow continuity can translate into meaningful financial gains. Because Algorized’s system works with existing wireless infrastructure, manufacturers may be able to upgrade machine awareness without overhauling their entire hardware setup.

More broadly, the company is addressing a structural limitation in industrial automation. Robotics has advanced rapidly in precision and power, yet human-robot collaboration is still governed by rigid safety systems that prioritise stopping over adapting. By combining wireless sensing with edge-based AI models, Algorized is attempting to give machines a more continuous awareness of their surroundings from the start.