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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Talent & Organisation

How Trade Shows Are Evolving to Better Support Small and Mid-Sized Manufacturers

A closer look at PMMI’s FastTrack initiative and why it matters for growing manufacturing firms

Updated

February 13, 2026 10:44 AM

Cardboard boxes in a warehouse. PHOTO: UNSPLASH

Large trade shows are built for scale. But for small and medium-sized manufacturers, that scale often creates distance between what’s on display and what they can actually use. Too many options, too little time, and very few tools designed for companies that are still growing. That mismatch is what PMMI is trying to correct with its new SMB FastTrack Program at PACK EXPO East 2026.

That is the problem PMMI is trying to address with its new SMB FastTrack Program, launching at PACK EXPO East 2026 in Philadelphia.

PMMI — the Association for Packaging and Processing Technologies — is the industry body behind the PACK EXPO trade shows and a central organization in the global packaging and processing sector. Through FastTrack, it has created a program (not an app or a product) designed to help small and mid-sized companies navigate the show more efficiently and connect with solutions that fit their scale.

The idea behind SMB FastTrack is simple: reduce friction. Instead of asking smaller firms to sort through hundreds of exhibitors and sessions on their own, the program curates what is most relevant to them. Exhibitors that offer flexible pricing, right-sized machinery, or SMB-focused services are clearly identified with visual icons in both the online directory and on the show floor. That way, a small manufacturer can quickly distinguish between enterprise-only vendors and partners that are realistically accessible.

The same logic carries into education. Rather than treating all attendees the same, PACK EXPO East 2026 will include a learning track specifically built around SMB realities. These sessions focus on issues that smaller teams actually face—how to hire and train workers, use AI without over-investing, improve food safety, cut operating costs, and adopt technology in stages. The goal is not inspiration, but applicability: content that reflects real constraints, not ideal scenarios.

Planning, too, is built into the structure of the program. Through a dedicated FastTrack landing page, participants can access curated supplier lists, recommended sessions, and planning tools that help organize their time before they ever step onto the show floor. Tools like category search and sustainability finders are meant to narrow choices quickly, turning a massive event into something manageable.

Seen together, these elements point to a broader intention. PMMI is not simply adding features—it is reshaping how smaller manufacturers experience a major industry event. Instead of competing for attention in a space built for scale, SMBs are given clearer paths to the people, tools, and knowledge that match where they actually are in their growth cycle.

What makes SMB FastTrack notable is not the technology behind it, but the intention behind it. PMMI is recognizing that progress for small and mid-sized manufacturers depends less on spectacle and more on fit—solutions that are accessible, affordable, and adaptable. The program is designed to help companies move with purpose, not pressure.

In an industry where visibility often follows size, SMB FastTrack represents a structural shift. It treats small and medium-sized manufacturers not as a subset of the audience, but as a distinct group with distinct needs. By doing so, PMMI is quietly redefining what a trade show can be: not just a marketplace of innovation, but a usable platform for companies still building their next stage of growth.