Thank you so much for joining us in this interview series. Before we dive into our discussion our readers would love to “get to know you” a bit better. Can you share with us the backstory about what brought you to your specific career path?
Throughout my career, I have been deeply immersed in the telecommunications industry. My journey began largely due to familial connections within the field, which sparked my initial interest. Early on, I took on various sales roles that allowed me to collaborate with industry colleagues at several startups and telecommunications companies.
A pivotal moment in my career occurred when I joined a startup called Telx (since acquired by Digital Realty [NYSE: DLR]), an interconnection and colocation provider based at 60 Hudson Street in New York at the time. I was fortunate to be part of the company during its formative stages, which provided me with invaluable insights into the data center and interconnection business. This experience not only enhanced my knowledge but also helped me establish myself as an industry expert. The skills and expertise I developed during this time have significantly shaped my professional path and continue to influence my work today.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
As a successful business leader, I believe three character traits have been instrumental to my success:
- focus on culture
- emphasis on trust, and
- leading by example.
First, cultivating a strong company culture is paramount. The culture serves as the foundation for communication, energy, and drive, not just for individuals, but for the entire organization. It’s crucial to find people who align with and contribute to the culture you’re building. For instance, when hiring new team members, I always prioritize cultural fit alongside skills and experience. This approach has resulted in a more cohesive and motivated workforce.
Second, trust is essential in business relationships. I need to trust my colleagues, and they need to trust me. Without this mutual trust, it’s impossible to work efficiently and effectively. A prime example of this was during a major company pivot, where open communication and unwavering trust in each other’s abilities allowed us to navigate challenging times successfully.
Lastly, leading by example is a core principle of my leadership style. I strive to operate in a manner that I expect others to emulate, whether it’s in how I respect others, embrace our culture, or demonstrate a strong work ethic. This also involves being humble and open to learning from those around me. I recognize that my team members are often experts in their respective fields, possessing knowledge that surpasses my own in those areas. For instance, during a recent product development phase, I actively sought input from our engineers and designers, acknowledging their expertise and incorporating their insights into our strategic decisions.
Let’s now move to the main point of our discussion about AI. Can you explain how AI is disrupting your industry? Is this disruption hurting or helping your bottom line?
From my perspective, this disruption is beneficial to our bottom line. AI is driving incredible demand for data center space, leading to the generation, creation, consumption, and computation of vast amounts of data. This, in turn, necessitates extensive edge interconnection to move that data efficiently.
While this surge in demand is a positive development for 1547, it does pose challenges for some traditional, non-AI tenants of our data center facilities. These tenants, who also require data center space and edge infrastructure for network interconnectivity, are now compelled to plan for their future needs much earlier than before due to the rapid consumption of available inventory driven by AI. The disruptive impact of AI on our industry is overwhelmingly positive, particularly for the data center sector.
Which specific AI technology has had the most significant impact on your industry?
In the data center industry, generative AI and deep learning have significantly impacted our operations by driving the creation of vast amounts of data. Specifically, in our focus on interconnection and the carrier hotels we operate, we anticipate a more substantial impact from the inference phase of AI. This phase involves real-time processing for applications such as fraud protection and autonomous driving. These tasks often occur on devices like smartphones and require low-latency access to end-users. Consequently, moving data efficiently from creation to storage and computation is crucial, especially in edge locations like ours.
Can you share a pivotal moment when you recognized the profound impact AI would have on your sector?
It’s challenging to pinpoint an exact moment, but over the past couple of years, the profound impact of AI on our sector became increasingly evident. We began receiving Requests for Proposals (RFPs) and Requests for Information (RFIs) from AI companies, and the scale of these requests was striking. For instance, a 30-megawatt requirement, which used to be considered substantial, is now relatively modest. This shift highlighted the disruptive influence AI was having, particularly on some of our traditional colocation/interconnection tenants.
Previously, many enterprises and financial institutions would discuss their deployment needs for the next six months. However, in the last couple of years, this conversation has evolved. They now present growth forecasts spanning the next three years. This rapid change, especially noticeable about 18 months ago (end of 2022 beginning of 2023), underscored the increasing demand and long-term planning associated with AI. We started seeing more significant RFPs and RFIs, with projections extending three to five years, rather than the shorter six to twelve-month timelines we were accustomed to.
How are you preparing your workforce for the integration of AI, and what skills do you believe will be most valuable in an AI-enhanced future?
In the digital infrastructure sector the foundational skill set for operating data center environments has remained relatively consistent. However, the integration of AI is driving a need for our workforce to evolve and adapt to new technologies. One of the most significant changes we’re seeing is the increased power demands associated with AI deployments. This requires us to manage much denser spaces and rethink our cooling technologies.
To prepare our team, we are focusing on upskilling our existing employees, particularly those involved in development. They need to become proficient in the latest cooling technologies, as the power density requirements have escalated dramatically. For example, 20 years ago, we were cooling cabinets with about 2 kilowatts per cabinet. This gradually increased to 5–8 kilowatts over the next decade, and just a few years ago, we were averaging 10–15 kilowatts.
However, the landscape has shifted rapidly. In the last couple of years, we’ve seen power densities jump from 15 kilowatts per cabinet to 100 kilowatts, and we anticipate reaching 200 kilowatts or more soon. This means that what took 20 years to grow tenfold is now increasing twentyfold in just two years.
While much of our underlying infrastructure remains the same, the challenge now is to efficiently pack and cool these high-power environments within a limited physical footprint. Therefore, we are committed to ensuring our workforce embraces and masters these new technologies, equipping them with the skills necessary to support the demands of an AI-enhanced future. This response presents a clear and structured answer, demonstrating both awareness of the challenges and a proactive approach to workforce development.
What are the biggest challenges in upskilling your workforce for an AI-centric future?
One of the biggest challenges in upskilling our workforce for an AI-centric future is the rapid pace of technological change. Given that these environments have only been developed over the past year or even months, there is a scarcity of individuals with relevant experience. Additionally, the future landscape remains somewhat uncertain, though we do know that the density and complexity of these technologies are growing at an unprecedented rate.
To address this, we need to hire experts who can adapt to these rapidly evolving requirements. These individuals must be adept at sourcing the right components from the right vendors to meet our technological needs, even for GPUs and other hardware that have yet to be developed. For instance, we are in discussions with customers and prospects who are planning their data center capacities for the next three years. They anticipate needing over one kilowatt per cabinet, despite not knowing exactly what hardware will be housed within them, as it does not yet exist.
In essence, the challenge lies in upskilling our personnel to prepare for and accommodate technologies that are still on the horizon. This requires a forward-thinking approach and a deep understanding of both current and emerging trends in AI and related fields.
What ethical considerations does AI introduce into your industry, and how are you tackling these concerns?
The primary ethical concern that AI introduces to the data center industry revolves around power generation, sustainability, and low carbon emission sources. This aligns with the growing importance of Environmental, Social, and Governance (ESG) themes in recent years. While these issues were significant before the advent of AI, they have become even more critical due to the massive power requirements of new data center developments. To address these challenges, we are implementing several strategies. We collaborate closely with utility providers to explore alternative energy sources, helping us identify and utilize more sustainable options. Additionally, we are investigating the potential for on-site generation from renewable sources, which includes exploring new technologies that can support our energy needs while minimizing environmental impact.
Our team is actively exploring various options and working with utilities to implement more on-site sources of green energy. We recognize that the source of power is the most significant ethical consideration in our operations, and we are committed to tackling this challenge head-on. By focusing on sustainable power solutions, we aim to mitigate the environmental impact of AI-driven data centers while continuing to drive technological progress in our industry.
What are your “Five Things You Need To Do, If AI Is Disrupting Your Industry”?
1 . Decide on Your Path. We faced a pivotal decision: should we continue supporting AI at the edge with existing infrastructure, or should we invest in building massive data centers tailored for high-density AI requirements? After thorough deliberation, we chose to venture into constructing specialized data centers, recognizing the potential for significant growth in AI-driven demand.
2 . Plan Meticulously. Planning involved a deep dive into understanding the latest AI technologies and their infrastructure needs. We mapped out the specifications required for our new data centers, ensuring they could handle the anticipated high power densities and data throughput. This planning phase was critical in aligning our resources and timelines with our strategic goals.
3 . Evolve with the Technology. Transitioning from traditional data center technologies to cutting-edge solutions was necessary. For instance, we upgraded our cooling systems and power distribution networks to accommodate the unique demands of AI workloads. This evolution ensured that our facilities remained competitive and capable of supporting advanced AI applications.
4 . Understand the Risks. We conducted a comprehensive risk assessment to identify potential pitfalls. One significant risk was the possibility of overbuilding. If the projected AI demand did not materialize, we could be left with underutilized, high-cost facilities. To mitigate this, we developed flexible infrastructure plans that could be scaled down or repurposed if necessary.
5 . Have Backup Plans. Recognizing the uncertainties in AI growth trajectories, we established contingency plans. For instance, we designed our data centers with modular components that could be repurposed for other high-density computing needs if AI demand fell short. This approach ensured that our investments remained viable and adaptable to changing market conditions.
What are the most common misconceptions about AI within your industry, and how do you address them?
One of the most common misconceptions about AI in the digital infrastructure sector is the belief that AI will replace humans. This misunderstanding overlooks the fact that AI, while powerful, is often used to enhance and support human efforts rather than replace them. For instance, AI is integral in managing data and automating systems, such as those that handle infrastructure during power outages. These smart systems can read data from utilities and communicate with other machines to take action. However, human intervention remains crucial. There are scenarios where machines may not perform as expected, and a human is needed to step in, make adjustments, or handle unforeseen issues. This human oversight ensures that operations run smoothly and safely.
Another misconception is that adopting AI requires a complete overhaul of existing infrastructure. In reality, many legacy systems can be upgraded and enhanced to meet new demands. For example, we can achieve higher tower densities by replacing specific pieces of equipment rather than rebuilding entire infrastructures. This approach allows us to accommodate AI requirements without discarding valuable legacy equipment, ensuring it remains relevant and functional. This version is more concise and clearly addresses the misconceptions while providing specific examples and explanations.
Can you please give us your favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life?
One of my favorite quotes is “cooler heads prevail.” I’ve found this principle to be invaluable in both my professional and personal life, and I’ve probably referenced it over a hundred times.
In moments of frustration — whether it’s receiving a challenging email from an employee or facing a difficult situation — I’ve learned the importance of taking a step back. Instead of responding immediately, I often remind myself to take a walk or simply pause before reacting. This cooling-off period allows me to approach the situation with a clearer mindset.
For instance, there have been times when I’ve been tempted to fire off a quick, emotional response to an email. However, I’ve made it a practice to delay my reply until the next day. More often than not, my response the following day is not only more thoughtful but also leads to a better outcome than if I had reacted impulsively.
I’ve also shared this lesson with colleagues. During email exchanges where tensions might run high, I often reach out to advise others to hold off on their responses. I tell them, “Trust me, cooler heads prevail.” This approach helps diffuse potential conflicts and encourages more constructive communication. It’s a reminder that, much like fighting fire with water instead of fire, taking a moment to cool down can lead to much better resolutions.
Off-topic, but I’m curious. As someone steering the ship, what thoughts or concerns often keep you awake at night? How do those thoughts influence your daily decision-making process?
While there are occasional one-off situations that might disrupt my sleep, in all honesty, the primary concern that keeps me awake at night is the health and welfare of my family. This fundamental priority significantly influences my daily decision-making process and overall approach to life.
Everything I do is ultimately for the well-being of my loved ones. This may sound cliché, but it extends beyond my immediate family to encompass the people I work with, who often become like friends and family to me. I genuinely care about their welfare too.
For instance, if a valuable employee on my sales team is struggling financially, it weighs on my mind. I want to retain them and see them succeed, so their family’s well-being becomes a concern for me as well. This care extends to all the people I know, work with, and value.
That said, I recognize the importance of our day jobs. We perform crucial tasks that support the world, communities, and the sharing of content and information. In some cases, we’re involved in financial or health-related services that directly impact people’s lives. However, at the core of it all, my daily work is driven by the desire to provide for and support my family.
This fundamental motivation keeps me on the right track, ensuring that I’m constantly striving to meet the needs and expectations of my loved ones. It’s the guiding principle that shapes my decisions and actions, both professionally and personally.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
If I could start a movement to bring about the most good for the greatest number of people, it would center around a simple yet powerful gesture: smiling and waving. In my lake community, I’ve noticed how effective this small act can be. Whether I’m walking or driving, I make it a point to smile and wave at those I encounter. It’s incredible how a simple gesture can convey friendliness and warmth, potentially brightening someone’s day, especially if they’re having a tough time.
While I don’t always manage to embody this spirit — there are days when I feel grumpy — I still believe in the impact of this practice. As a Jeep owner, there’s an unspoken camaraderie among fellow Jeep drivers, where we wave at each other as a sign of connection. I often find myself extending this gesture to everyone I see, regardless of the car they drive.
Ultimately, I believe that a smile and a wave are understated yet profound ways to remind strangers that kindness exists in the world. This movement could foster a sense of community and positivity, encouraging people to engage with one another and recognize the goodness in those around them.
How can our readers further follow you online?
LinkedIn: https://www.linkedin.com/in/johnbonczek/
Thank you for the time you spent sharing these fantastic insights. We wish you only continued success in your great work!