Generative AI: The Vigilant Watchtower for Data Centers

February, 2024

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.

Elevating Data Center Monitoring to New Heights with Gen AI

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.

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Figure 1: Expected productivity impact of Gen AI on key functions of data center management.

The crucial role of Gen AI across the five key data center functions is examined below.

    • Data center planning and design: Gen AI has the potential to transform the landscape of data center capacity planning. By utilizing historical data, it can forecast future capacity needs, providing a basis for well-informed decisions regarding infrastructure expansion, consolidation, or upgrades.
    • Infrastructure installation and configuration: Gen AI models possess the ability to produce synthetic server and network configurations, encompassing aspects such as the count of server instances, CPU specifications, operating systems, memory configurations, and generation of scripts compatible with IT automation tools and visual representations of networking maps.
    • Data center monitoring: Observability solutions powered by Gen AI can automate substantial segments of monitoring and optimize processes, delivering insightful and high-quality information. Enterprises can use Gen AI in incident management to automatically gather crucial incident details, assess the incident’s impact across the data center environment, and generate concise and simplified logs.
    • Data center support: Gen AI is useful for creating effective backup plans and assessing compliance with SLAs. It utilizes insights from past crises to continually enhance response strategies for disaster recovery mechanisms. Additionally, it plays a crucial role in generating reports for regulatory compliance, simplifying the compilation and submission of necessary information to regulatory authorities.
    • Data center maintenance: Gen AI is helpful in assessing the impact of changes by simulating and predicting various scenarios and their potential effects on the organization. Additionally, it plays a crucial role in real-time security threat detection and response, scrutinizing network traffic for abnormal behavior and pinpointing potential cyberattacks.

Empowering Enterprises Beyond Automation with Peak Productivity

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.

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Figure 2: Key Gen AI use cases that are most adopted by enterprises.

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, 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 Revolutionizing Data Center Management

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