AI is Here: Is Your Organization’s Data Center Ready for the Challenge?

 As Artificial Intelligence (AI) rapidly redefines the technological landscape in the Philippines, organizations are under pressure to modernize their data centers. AI's demands for increased power, cooling, and scalability are pushing businesses to reconsider their IT infrastructure to stay competitive and meet growing operational needs.

According to a PricewaterhouseCoopers (PwC) Philippines study, 74% of CEOs in the country believe AI technologies such as Generative AI will enhance efficiency and benefit employees. They are optimistic that this will open doors on integrating other AI technologies in the future.

However, recognizing the importance of AI is just the first step. According to a Cisco study, the Philippines faces significant challenges in AI readiness, with most organizations classified as "Followers" or "Laggards" across multiple pillars, such as infrastructure and strategy. The study revealed that only 14% of Philippine organizations are fully prepared with scalable IT infrastructure for AI, while 49% report limited scalability and require upgrades. On the strategic front, 77% of organizations are considered "Pacesetters" or "Chasers" in terms of AI adoption, yet only 26% prioritize it in their budgets. Moreover, 98% of businesses report increased urgency to adopt AI, but only 29% have a comprehensive change management plan.

So this raises an important question: Are organizations in the country truly prepared for AI at scale, especially as they increasingly rely on it to redefine their operations?

As AI becomes central to business operations, enterprises face an urgent need to modernize their data centers to handle the heightened demands of this technology. Vertiv Philippines Sales Director Pamela Albar emphasized the critical role data centers play in this shift.

"Large companies rely on enterprise data centers to support their IT needs. These centers house high-density infrastructures, including servers, racks, and network systems that process crucial internal data. With the rise of AI, these data centers are now compelled to process AI workloads too. That’s why these facilities must have essential infrastructure like power, cooling, and environmental monitoring systems. Any downtime can severely impact business operations and the chance to stay competitive in today’s AI-driven world," said Albar.

To keep pace with fast-evolving technology, Vertiv shares several strategies for optimizing data center capacity, ensuring that businesses stay ahead in the AI technology race.

Winning the AI tech race means addressing infrastructure challenge

AI presents a double-edged sword for large companies. While it improves processes and drives innovation, it also introduces new challenges—particularly the need for infrastructure that can handle higher-density operations.

AI applications are power-intensive, demanding significant electricity, energy, and processing resources. To function effectively, these applications require advanced hardware such as Graphics Processing Units (GPUs), which accelerate graphics and rendering tasks. However, traditional enterprise data centers, which typically support around 10 kilowatts per rack, are ill-equipped to meet the substantial 50 to 100 kilowatts per rack required by AI applications. This creates intense pressure on organizations to cope with the surge in demand for business applications that require minimal latency. Consequently, data centers must adapt to the increased heat, energy usage, and workload generated by these activities.

Vertiv recognizes the need to bridge the gap between IT and data centers. To this end, they offer comprehensive solutions tailored to the specific demands of AI workloads.

Scaling up for AI: The need for a 360 data center solution

The fast-paced growth of AI applications for businesses underscores the importance of scalability. Failing to prioritize scalability puts organizations at risk of falling behind in the AI race. Therefore, businesses need to build future-ready data center infrastructure that can scale to meet evolving demands.

Three core areas should be prioritized when improving enterprise data centers for AI: power, cooling, and infrastructure

Addressing power demand

AI workloads, particularly those involving large-scale data processing and machine learning, require immense computational power. Traditional power systems are often insufficient, leading to inefficiencies and even downtime.

To address this, modern data centers need solutions that can deliver high-density power while ensuring energy efficiency. For instance, adopting scalable power solutions like modular UPS systems can help businesses maintain continuous power flow even during grid failures. Additionally, smart power distribution allows real-time monitoring and control, ensuring that power is delivered precisely where and when it’s needed, reducing waste and operational costs. Implementing these solutions means businesses can meet AI’s growing power requirements while optimizing energy use and minimizing disruptions.

Embracing advanced cooling solutions

AI systems, particularly those using GPUs, generate substantial heat. Excessive heat can slow down processing speeds and damage hardware. To manage this, businesses should adopt innovative cooling solutions

Liquid cooling technologies directly cool critical components inside servers, ensuring that no excess heat builds up. Combining liquid cooling with air systems can optimize energy consumption and extend equipment life, allowing businesses to operate AI applications at peak performance. Some examples are Direct-to-Chip Liquid Cooling, Modular Rack Cooling, Rear-Door Heat Exchangers, and more.

Investing in scalable and flexible infrastructure

Addressing infrastructure demands requires creating a flexible and scalable environment that grows alongside AI needs. Traditional data centers can be rigid, but AI requires modular infrastructure for seamless expansion.

Prefabricated modular data centers, for instance, provide a plug-and-play solution that allows businesses to add capacity quickly without long lead times. These modular units come equipped with integrated power and cooling systems, making deployment faster and more efficient. Remote monitoring tools also provide full visibility into data center performance, helping businesses predict maintenance needs and avoid costly downtimes.

Looking Ahead to the Future of AI and Businesses

As technology continues to evolve, every business must prioritize future-proofing its operations. The future of industry demands 24/7 efficiency with no tolerance for downtime, and organizations that fail to meet these standards risk falling behind. Vertiv understands this challenge and is at the forefront of supporting the growing demand for AI technologies, bridging the gap between AI and data centers.

Vertiv’s 360AI Reference Solution provides a comprehensive and transformative approach to managing high-density AI workloads. With scalable designs tailored to meet a wide range of needs—from single racks to expansive, modular data centers—this solution addresses the core challenges of AI infrastructure: power, cooling, and deployment efficiency. Vertiv’s 360AI not only ensures efficient power distribution and advanced cooling strategies but also simplifies deployment through its pre-engineered, modular systems, reducing setup time by up to 50%. Vertiv also offers reference designs, enabling businesses to draft comprehensive strategies that align with their specific AI needs and growth objectives.

By delivering an all-in-one solution that integrates these essential components, Vertiv is empowering organizations to keep pace with the AI revolution. The key to staying ahead in the AI tech race lies in being agile, efficient, and future-ready. With Vertiv’s 360AI, businesses can confidently embrace the future of AI with the reliability and scalability they need to thrive.

To learn more about how Vertiv supports the continuity of today’s vital business operations, visit Vertiv.com

Clout Kitchen raises $4.45M from a16z SPEEDRUN, Peak XV’s Surge, & AppWorks to build ‘AI twins’ of top creators like Tyler1, Emiru

Clout Kitchen, a consumer AI startup with operations in Los Angeles and Manila, today announced its $4.45 million seed funding round.

The round was co-led by a16z SPEEDRUN and Peak XV’s Surge – with participation from Taiwan’s AppWorks, Antler, Hustle Fund, Founders Launchpad, Orvel Ventures, and founders & creators like Gabby Dizon (YGG), Kun Gao (Crunchyroll), Voyboy, Jankos and Perkz. 

Established in 2024, Clout Kitchen builds creator-powered interactive experiences in gaming and pop culture that unlock new ways for top creators to engage and expand their fan base. 

Clout Kitchen is led by serial gaming and creator economy builders. 

• Justin Gorriceta-Banusing (CEO) founded and scaled AcadArena (SEA and LatAm’s leading campus gaming platform) to series A and an exit while in college. In high school, they built CONQuest Festival – the largest creator event in SEA with 80K+ attendees. 

• Marcel Feldkamp (CBO) was a pioneering League of Legends pro/creator, playing in the 2013 World Championship. After retiring, he founded the gaming talent agency Prime – who later joined United Talent Agency via Press X.

Clout Kitchen’s first product is Backseat AI, an in-game “buddy” for League of Legends co-built with Tyler “Tyler1” Steinkamp – one of the world’s biggest gaming content creators with over 20 million followers. Backseat AI is Riot-compliant and guides players on how to best play the game in real-time – from what characters to pick to which items to buy, all by an AI voice twin of their favorite creator. Since launching early access testing in June, the product has hit over 45,000 waitlist signups. 

“Our thesis at Clout Kitchen is to build things that grow the pie and add value for fans, creators, and game developers alike,” said Justin Banusing, CEO, Clout Kitchen. “We grew up in this space, so it’s our way of giving back.”

Pricing starts at US$4.99 monthly for each creator “buddy,” who earns from every subscription. Backseat AI’s buddies roster continues to expand with streamer & cosplayer Emiru and pro player Jankos – with more top creators lined up in the coming months.

“As a creator myself, I know how difficult it is to keep your community and business growing,” said Marcel Feldkamp, CBO, Clout Kitchen. “It’s easy when you’re starting and have all the time in the world – but it gets harder to keep giving the same love to everyone as you scale. We want to solve that problem.” 

With this financing round, Clout Kitchen looks to expand Backseat by scaling its team, establishing its US office, and building out its shared internal tech stack for future creator-powered game companion apps and experiences. 

“As a gamer and a creator myself, I’m excited to support Justin and Team Clout Kitchen in their journey to unlock new frontiers for our community,” said Jamie Lin, Chairman & Partner, AppWorks,“ Justin and the founding team showcased exceptional hearts, heads and hands from the moment we met them, the very traits we look for in founders.”

"At a16z, we believe in the transformative power of technology and games to reshape how we connect, create, and experience the world. Clout Kitchen embodies this vision wholly, and we are thrilled to support their journey as they pioneer new ways for fans to engage with the creators and games they love," said Jack Soslow, Investment Partner, A16Z GAMES.

DOST, Packworks partner for AI-powered sari-sari stores

 Sari-sari stores are about to become smarter and more technologically advanced.

The Department of Science and Technology (DOST) funded Packworks, a Filipino startup that offers a business-to-business (B2B) fast-moving consumer goods (FMCG) marketplace for sari-sari stores, to leverage Artificial Intelligence (AI) aimed at equipping over 1.3 million sari-sari stores nationwide with data-driven inventory management tools to enhance business growth.

A PHP3.5 million research funding from the DOST- Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) Startup Grant Fund (SGF) Program will support Packworks' PHP 1.5 million allocation to develop a machine-learning-powered precision marketing model, offering sari-sari stores customized recommendations on sellable items and promotions from Packworks' FMCG partners.

DOST Secretary Renato U. Solidum, Jr. expressed his support for the project, stating: “Our mission at DOST is to build an integrated, inclusive and sustainable startup ecosystem.  We hope to support startups at every stage of development, from formation to validation, until growth.”

The SGF Program aims to support technology-based startups by transforming early-stage technologies into market-ready products. Now in its second cycle, the program continues to foster innovation across various sectors, including sustainable industries, education, creative industries, data-driven technologies, climate change, and productivity enhancement tools. Since July 2022, DOST has supported 123 startups in the country through the SGF program.  

Sari-sari stores, despite serving as the primary source of daily essentials for around 94% of Filipinos, are often faced with challenges such as inadequate financial management, lack of actionable customer insights, and ineffective promotional campaigns. Furthermore, the current absence of a streamlined approach for receiving high-quality promotions, such as discounts or personalized item packages from FMCG manufacturers, restricts store owners from enticing and retaining customers effectively.  

“Through this AI-powered model we will develop in partnership with DOST, we aim to equip small entrepreneurs with data-driven insights and targeted strategies for enhanced business success and expansion," said Packworks Chief Data Officer and project lead Andoy Montiel.

Sari-sari stores are part of micro, small, and medium-sized enterprises (MSMEs) in the Philippines, which account for an overwhelming 99.5% of all business establishments. Of those, around 500,000 are in the wholesale and retail industry.

The AI-powered capability will be launched as an in-app service on Packworks’ Sari.PH Pro app and is expected to benefit its network of over 270,000 sari-sari stores across the Philippines.

"We are thrilled to partner with Packworks in this groundbreaking initiative to support the sari-sari store sector, a vital pillar of the Philippine economy. This collaboration exemplifies the government’s commitment to fostering technological advancement and economic growth through strategic public-private partnerships, as outlined in the Innovative Startup Act. We look forward to witnessing the transformative impact of this partnership on the grassroots retail industry towards driving inclusive growth and innovation across the Philippines,” DOST-PCIEERD Executive Director Dr. Enrico Paringit said.

Aligned with Republic Act (RA) No. 11337, or the Innovative Startup Act (ISA), the initiative underscores the government's commitment to enhancing the country's startup ecosystem towards driving economic growth and technological advancement.

Packworks CEO Bing Tan expresses his optimism about the partnership with DOST.

"We are elated to be collaborating with DOST through a shared vision to energize the grassroots retail industry in the country. This public-private partnership will be instrumental in addressing the unique challenges faced by sari-sari stores, providing them with the tools and insights needed to thrive in a competitive and increasingly digitized market. We look forward to leveraging AI-driven solutions to empower these stores, enhance their operational efficiency, and drive economic growth at the grassroots level," said Tan.

Launched in 2018 as a solution for multinational companies with only a handful of sari-sari store partners, Packworks has rapidly expanded as a B2B platform that enables growth and success throughout all stakeholders in the supply chain ecosystem, from small sari-sari store owners to wholesalers, distributors, and renowned FMCG companies and brands. Through the Sari.PH Pro app, sari-sari store owners can access pricing tools, inventory management, sales and revenue tracking, and working capital loans.

In 2022, the startup launched Sari IQ, a business intelligence tool offering real-time and historical consumer expenditure data to help retailers and brands gain visibility into sari-sari stores and expand their reach to more customers. Analysis through the platform also helps them make data-driven decisions to boost the sales of sari-sari store owners by understanding and predicting consumer demand within their area.

The collaboration with DOST, which will run for 18 months, aims to reach more micro-retail stores across the country, enhancing their digital capabilities and fostering entrepreneurial growth and success.