Pankaj Sharma, Executive Vice President of Schneider Electric: In the era of artificial intelligence, China is full of new and infinite possibilities
In 2023, the development of generative AI has entered a new stage, and the global AI industry has entered a new era of explosive growth. It is predicted that AI will drive the compound growth rate of data centers to 12.5% over the next three years. The AI industry is growing at 2 to 3 times faster than the average data center industry (24-36% CAGR). Behind a series of impressive numbers is the profound impact of artificial intelligence on the construction and development of data centers. As a major driving force for the development of the industry, artificial intelligence has not only brought about the growth of intelligent computing power and the hot demand for construction, but also brought many challenges such as the increase in carbon emissions due to the rapid growth of electricity consumption.
On October 26, Pankaj Sharma, Executive Vice President of Schneider Electric and Global Head of Critical Power Business, drew to the end of his first trip to China after the pandemic, and he discussed with reporters on topics such as AI-driven data center remodeling and data center sustainability.
In the era of artificial intelligence, we will deepen China's vast opportunities
Pankaj Sharma, who has worked in Schneider Electric for more than 20 years, has been responsible for the operation and management of different countries and regions for a long time, and is the formulator and in-depth participant of the group's global business layout. Commenting on the abundant growth opportunities in the global data center market, Pankaj Sharma said: "This is not only due to the development of artificial intelligence (AI) technology, but also to the existing needs of e-commerce, metaverse and other fields. However, China has more opportunities than other countries and regions in the world, thanks to China's high attention and support for the digital economy, as well as its determination and rapid advancement of the dual carbon goal strategy, which makes Schneider Electric's data center business have broad market opportunities in China. For Schneider Electric, China is not only the world's second largest market for 36 years of continuous cultivation and development, but also a market full of new and infinite possibilities."
From an industry perspective, Pankaj Sharma believes that the demand for data centers is across the entire industry chain and has a wide range of scales. Taking new energy vehicles as an example, their data carrying capacity far exceeds that of gasoline vehicles; For people's daily life, when shopping online, every recommendation of search engines requires the participation of artificial intelligence and the support of data centers; For enterprises, to achieve industrial automation, they need to optimize and improve industrial processes based on AI analysis. The same is true for government agencies, where more and more extensive data is needed to facilitate decision-making and policymaking.
Pankaj Sharma further explained that data center infrastructure has undergone a significant evolution to better meet the growing demand for AI workloads. This evolution includes several key developments, such as the emergence of more specialized hardware, high-performance computing (HPC), liquid cooling, modularity, and a greater emphasis on sustainability. However, there is no doubt that artificial intelligence will bring more potential business development opportunities to Schneider Electric, whether it is in the fields of power supply and distribution systems, refrigeration technology, energy storage applications, or intelligent computing transformation business. Taking this as an opportunity, Schneider Electric is relying on cutting-edge industry insights and rich practical experience, based on innovative technologies and solutions, integrating digital services and innovative services, and can make a big difference in the development of the era of artificial intelligence.
We will continue to strengthen the "China-centric" strategy and increase investment in China
As a representative of multinational enterprises that are constantly improving localization, Schneider Electric has continued to increase its investment in China in recent years. Under the guidance of the global "multi-center" strategy, we will strengthen the construction of "China Center", establish an agile mechanism for the integration of research, production and marketing internally based on the localization of talents, and form a strong ecosystem externally, so as to quickly and efficiently meet local needs, and export more Chinese wisdom to the outside world and empower the world.
Earlier this year, Schneider Electric opened a key power innovation lab in Shanghai. As one of the world's three major three-phase UPS laboratories, it has one of the world's leading high-megawatt certification test platforms, fully supports the global R&D strategic business of key power supply, energy storage and other product systems, and helps the transformation and upgrading of the data center industry with innovation.
In the third quarter, with the establishment of the "China Center" for the key power supply business, China's R&D capabilities were also continuously consolidated. The "China Center" will further strengthen the R&D and innovation capabilities of key power supply businesses, achieve continuous innovation at all levels of technology, business model, system and operation, and achieve the goal of accelerating local innovation through an agile mechanism that integrates R&D, production and marketing including R&D, industrial chain and partners.
The focus on China's innovation has undoubtedly brought many remarkable results to Schneider Electric's critical power business. For example, the Galaxy PX, a next-generation modular three-phase UPS developed by the Chinese team, is suitable for small and medium-sized data centers and other business-critical applications, providing customers with safe and reliable power supply and efficient and excellent operation management. Based on innovative and patented technology, the Galaxy PX enables safe and reliable Live Swap (online plugging and unplugging), which will effectively ensure the safety of the operator and the continuous operation of the load equipment, and has also been awarded the world's first Live Swap certification issued by TÜV Rheinland. In addition, Schneider Electric also uses the development of AI technology to continue to provide more innovative solutions for industry customers. The SmartCool solution, launched by the Chinese R&D team, integrates AI machine learning (ML) technology, which allows the end of the air conditioner to perform dynamic cooling output based on the real-time demand of IT load, thereby further improving the cooling energy efficiency of the data center, achieving energy saving and consumption reduction, and reducing the impact on the environment.
In addition, Schneider Electric's energy-saving renovation services can effectively help "old and small" data centers achieve efficiency improvement from planning to implementation, and then meet the requirements of sustainable development. Pankaj Sharma said that while the market demand and opportunities are explosive, for older data centers, "old" means that the technology may not be the most efficient, and with increasingly stringent energy efficiency management metrics, it needs to be upgraded. Based on rigorous investigation and accurate evaluation, Schneider Electric provides solutions that can ensure the compliance of "old and small" data centers, and better meet the future development needs of the industry - building a sustainable, efficient, resilient and adaptable data center of the future.
Behind the above-mentioned series of practical measures and achievements, Schneider Electric's deep insight and accurate prediction of the development trend and opportunities of the Chinese market are reflected.
Anchor the goal of innovation, driven by ideas and talents
According to Pankaj Sharma, capability is the key and fundamental driver of digital innovation, and China has the resources and opportunities to create all the favorable conditions to promote the full development of digitalization. In a good and predictable market environment, Schneider Electric has continued to deepen innovation in response to the changes in the needs of the data center industry, from thought leadership, products to solutions, and is committed to building a future-oriented digital infrastructure.
As a global leader in infrastructure construction and digital services for data centers and key application areas of the industry, Schneider Electric has always adhered to in-depth exploration and research to create more ideological wealth for the data center industry, and based on the cutting-edge concepts of the industry, it points out the direction for R&D investment, and provides scientific theoretical basis and implementation path for data centers to achieve best practices in all aspects such as improving energy efficiency, improving availability and achieving sustainable development.
Up to now, Schneider Electric has published more than 220 industry white papers to explain the industry's cutting-edge concepts, innovative technologies and best practices, and also provide neutral and useful reference for the formulation of national standards and industry standards in related fields.
For example, Pankaj Sharma said: "In response to the current focus on data center sustainability, the industry is shifting from a single consideration of low PUE to a broader environmental impact, and customers need to assess the environmental impact of data centers in all aspects in addition to reducing energy and water consumption. These questions can be answered in Schneider Electric's White Paper No. 67." Focusing on data center operators at all stages of their sustainability journey, White Paper 67 is the first indicator framework to measure the environmental sustainability of data centers, helping customers set clear and feasible sustainability strategic goals across five dimensions: energy consumption, greenhouse gas emissions, water use, waste generation, and impact on local ecosystems, thereby helping them achieve their climate commitments. The latest White Paper 110 focuses on the disruption caused by artificial intelligence, which is challenging the design and management of data center infrastructure at a time when the increasing proportion of AI in data center workloads poses challenges for the design and management of data center infrastructure.
Pankaj Sharma said that Schneider Electric's innovation goals are mainly focused on two things, one is to become more digital, make hardware more interconnected, and integrate software with application scenarios. Therefore, Schneider Electric's R&D and innovation emphasize the integration of software and hardware, so as to better meet the iterative needs of users and promote the digital transformation of the industry. Second, it is more sustainable, Schneider Electric emphasizes the innovative concept of carbon reduction in the whole life cycle, and takes into account the impact of the whole life cycle of products on the environment in the design process. Schneider Electric continues to increase its investment in China, especially in R&D investment and talent training, which will undoubtedly make the innovation momentum in the Chinese market stronger and stronger.
"There are several keywords in China's cultural DNA, efficiency, tenacity, self-discipline and diligence, and China also has an impressive level of responsiveness and agility, which means that China is faster than the rest of the world. All these are very conducive to our local innovation, because these are the essence of innovation, and also provide a strong foundation for us to continue to strengthen local innovation and R&D capabilities. Pankaj Sharma commented.
Write at the end:
During this trip, Pankaj Sharma not only visited customers to conduct in-depth market investigations, but also participated in the Schneider Electric China Key Power Business Core Agent Meeting, where it discussed with China's core partners on topics such as cutting-edge changes in the industry and how to help China's digital infrastructure construction with innovative products and solutions. At the upcoming 6th China International Import Expo, Schneider Electric's innovative products and solutions for the critical power business will be an important part of the "Zero Carbon City" exhibition, presenting zero-carbon application scenarios for the data center industry.
Pankaj Sharma said that every time he visits China, he has strengthened his determination to invest in China, and China's policies, opportunities and speed make him firmly believe that Schneider Electric's future development in China will be very strong. "We have always believed that China is a vital market, and we will continue to invest more in the future, because the strong Chinese market will become even stronger in the future!"
