Home » Aerospace and defense » Generative AI: The Vigilant Watchtower for Data Centers
According to our IT Spending and Staffing Benchmarks 2023/2024 report, the data center tower makes up 22% of the average IT operational spending. Hence, managing data centers strategically is essential to effectively navigate market hurdles in today’s dynamic economy. For an organization, taking advantage of possibilities in spite of economic obstacles is just as important as maintaining security and smooth operation. Nowadays, businesses are dealing with resource constraints, adapting to new regulations and technology, conserving energy, and scaling up or down as necessary. Data center decisions are crucial for an enterprise to succeed in an ever-changing landscape
To overcome these hurdles, leading service providers harness AI and predictive algorithms to forecast potential issues, enabling proactive management and minimizing downtime. Generative AI further advances this approach, helping organizations manage data centers effectively, especially in monitoring and support services. It greatly benefits customers by automating operations, improving security, and quickly resolving issues, all while supporting data-driven decision-making.
Gen AI leverages the power of advanced algorithms and ML to streamline routine data center management tasks and anticipate, adapt, and optimize operations. It represents a paradigm shift from conventional methodologies, introducing a proactive and intelligent approach to data center management.
According to our recent analysis, the expected productivity impact of Gen AI on data center management is 14%–19%. It has the potential to transform the existing approach of data center observability through enhanced automation and personalization, which can further enhance response times and reduce incidents.

The crucial role of Gen AI across the five key data center functions is examined below.
Enterprises that were using AI technologies to automate regular data center management tasks are now driving the next wave of growth built upon Gen AI. According to our Data Center Managed Services 2023-2024 RadarViewTM survey conducted during August–October 2023, around 56% of the service providers have either accomplished or are in the pilot stages of integrating Gen AI use cases into data center management to improve developer productivity, streamline operations, and optimize efficiency for customers.

Enterprises leverage Gen AI to streamline data center operations, automate observability, and conduct faster analysis, revealing deeper patterns and insights. Gen AI is also utilized for code generation, refactoring, and logic generation from business requirements, reducing the need for manual coding and enhancing productivity. Integrating the technology into data center infrastructure support services enables the creation of AI-powered chatbots for personalized interactions and faster resolutions. Additionally, companies use Gen AI to manage incidents, automatically extracting key details, identifying the incident’s impact on the data center, and generating simplified logs. It is also instrumental in fine-tuning and optimizing the quality engineering aspects of data center-managed services by automatically generating and running diagnostic test cases.
Progressive service providers have already taken steps to integrate Gen AI into their solution offerings. For instance, HCLTech has integrated its Advantage Cloud platform with Amazon CodeWhisperer, a Gen AI-based coding companion, for automated cloud migration, encompassing rehosting, refactoring, and re-platforming with streamlined monitoring dashboards for data center migrations. LTIMindtree launched its Gen AI platform, called Canvas.ai, which provides the following operational services for data center management: issue resolution with AI-driven recommendations, derivation of correlations for alerts and events in real-time, performing noise suppression, and providing self-healing and guided resolution. Cognizant helps streamline data center operations and transform workflows through its Neuro® AI offering, which leverages Gen AI to optimize efficiency and decrease manual effort.
Gen AI is becoming a game changer for data center management. It is like having a super-smart assistant that keeps things running smoothly and predicts and solves issues before they even happen. This technology makes data centers more efficient, secure, and flexible, paving the way for a future where data management is much easier and more reliable. It allows data centers to flexibly adjust to changing demands, ensuring that resources are utilized optimally. This adaptability is particularly crucial in today’s dynamic digital landscape, where the volume and complexity of data continue to grow. Gen AI is not just an upgrade but a revolution in how enterprises handle the core digital operations of a data center.
Dhanusha Ramakrishnan, Lead Analyst, Avasant
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
Login to get free content each month and build your personal library at Avasant.com