AI Summary • 12 Data Sources Verified 2026 Executive Brief: The AI Factory Era
**Bottom Line:** The 2026 infrastructure paradigm has shifted from passive storage to **AI Factories**.
Key Data Points
- 2026 Capex (Big 5): $600B+ projected spend
- AI Intensity: 45-57% capex/revenue
- Density Standard: 100kW+ per rack
Liquid-Cooling Facilities in Austin TX
Quick primer on AI-ready colocation pricing in Austin TX, including density requirements, cooling architecture, and contract mechanics. As of 2026, **800VDC power distribution** and **Liquid Cooling** have become the expected baseline for new builds. Traditional 8kW/rack facilities are obsolete for training; modern "AI Factories" demand **100-300kW** per rack density. Use this section to benchmark "AI-ready" claims against these new physical standards.
Market Outlook: AI Colocation Capacity in Austin TX
Supply remains tight—only ~18% of US colocation inventory can sustain sustained 15kW+ racks without upgrades. Expect pricing to track power costs, local permitting friction, and available high-density inventory. If you operate in ERCOT, pair this analysis with insights from the [ERCOT Curtailment Playbook](/playbooks/ercot-curtailment-playbook-2025) to balance facility selection against grid volatility.
New Build PUE
1.15-1.22
efficiency ratio
Colocation vs Build-to-Suit: ROI Check
Build-versus-lease math hinges on timeline and balance sheet priorities. A 10MW greenfield build needs $20-30M in capex (roughly $2,100/kW) plus 12-18 months before revenue. Colocation at $2.6-4.4M/month delivers capacity in 3-6 months and converts risk to opex. Breakeven typically sits around 38-48 months, so anything shorter favors colo. Feed both scenarios into the [LCOC / IRR calculator](/tools/lcoc-irr-dscr) to quantify DSCR impact and layer in financing or tax equity assumptions.
AI-Ready Colocation Infrastructure Requirements
True AI-ready colocation infrastructure demands several critical capabilities beyond traditional datacenter specs. Power delivery must support sustained 15-25kW/rack loads with redundant feeds (N+1 or 2N architecture) and low voltage drop (<3% at full load). Cooling systems must handle 15-25kW heat dissipation per rack, requiring rear-door heat exchangers, in-row cooling, or full liquid/immersion cooling support. Network infrastructure needs 100-400Gbps low-latency fabrics for distributed training—far beyond traditional 10-40Gbps enterprise requirements. Physical security and compliance certifications (SOC 2, ISO 27001) are table stakes. Ask providers for reference deployments, measured PUE under AI loads, and peak power delivery test results. Many facilities claim "AI-ready" status but cannot sustain advertised densities at scale.
Deployment Walkthrough: 10MW AI Campus
A 10MW build in Austin TX spans 420-500 high-density racks (20-25kW each). Pricing at $300/kW/month yields ~$3.0M monthly facility cost. With ~2,200 GPUs (8 cards per node), GPU leases at $8,600/month add $18-19M. Networking/storage ($0.9-1.2M) and ops staff ($320-480K) bring fully-loaded opex to $22-24M. Contrast with owned facility math: $25M capex for shell + $65-75M GPU purchase + $9-12M network spend plus $1.3-1.7M monthly operations. For ERCOT readers navigating power volatility, cross-reference mitigation tactics in the [ERCOT Curtailment Playbook](/playbooks/ercot-curtailment-playbook-2025) before locking long-term terms.
GPU Capacity
2,100-2,300
H100-class GPUs
Regional Factors: Austin TX
Local power markets, permitting culture, and competitive dynamics shape liquid cooling ready colocation austin tx outcomes in Austin TX. Pair this snapshot with targeted deep dives—the [ERCOT Curtailment Playbook](/playbooks/ercot-curtailment-playbook-2025) for Texas-heavy roadmaps or the [PJM Interconnection Guide](/playbooks/pjm-interconnection-queue-guide-2025) when building east of the Mississippi.
Implementation Guide: Contracting AI-Ready Colo
Implementing liquid cooling ready colocation Austin TX starts with facility assessment and provider selection. Define requirements: power capacity (MW), rack count, power density per rack (kW), cooling requirements (air vs liquid), network bandwidth needs, and deployment timeline. Issue RFPs to 3-5 qualified colocation providers serving your target region, requesting site tours, reference customers, and detailed pricing (setup fees, monthly recurring costs, power rates, cross-connect fees). Evaluate facilities for AI-readiness: verify sustained power delivery capabilities, cooling system capacity under full load, network fabric architecture, and compliance certifications. Negotiate contract terms: commit length (longer terms secure better pricing but limit flexibility), scaling options (reserve additional capacity for future growth), SLA penalties for downtime, and exit clauses. Plan migration timeline: procure and ship equipment, coordinate installation windows with provider, configure network connectivity, and execute cutover plans minimizing downtime. Post-deployment, monitor facility performance (PUE, uptime, support responsiveness) and maintain relationships with provider account teams for future expansion needs.
AI Colocation FAQ
**What makes a datacenter "AI-ready"?** True AI-readiness requires sustained 15-25kW/rack power delivery, cooling systems handling equivalent heat dissipation, 100-400Gbps low-latency network fabrics, and proven operational experience with GPU workloads. Many facilities claim AI-ready status without delivering on all requirements. **What's typical AI colocation pricing?** Expect $250-450/kW/month depending on region, power density, cooling requirements, and service level. This represents 40-60% premium versus traditional enterprise colocation due to infrastructure requirements. **Should I build or colocate?** Colocation makes sense for deployments under 3 years, smaller scale (<20MW), or where capital preservation is critical. Build-to-suit makes sense for committed multi-year deployments exceeding 36-48 month breakeven period. **How long to deploy in colocation?** Expect 3-6 months from contract signing to production deployment for existing AI-ready facilities with available capacity. New builds or major retrofits require 12-18+ months. **What are typical contract terms?** Colocation contracts typically run 3-5 years with longer terms securing better pricing. Include scaling options for future growth and clear SLA terms with penalties for downtime exceeding commitments.