The document outlines the necessity for businesses to adapt to a 'data economy' fueled by rapid data growth and emerging AI technologies. It emphasizes that to be data and AI ready, companies must address five key infrastructure imperatives and shift to new, distributed architectures that enhance data processing and exchange. Additionally, it highlights the importance of digital infrastructure foundations, including network, security, compute, and data management, to enable effective digital transformation.

1. | 1
Are You Data
and AI Ready?
Proven approach to enable data
and AI-ready architecture
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2. | 2
Are You Data and AI Ready? | Introduction
Introduction
Digital Economy Becoming the Data Economy
The digital transformation opportunity is giving way
to a new data-powered era: the data economy.
Data Economy Creates New Interactions
The data economy is causing an explosive growth
in data. This continuous data creation lifecycle is
shifting data flows.
A New Architecture Is Needed
To support these shifting data flows, infrastructures
must evolve to brings apps, services, and clouds to
the data in centers of data exchange.
Digital Foundations Are Core to This Architecture
The infrastructure architectures in these centers
of data exchange are supported by core digital
infrastructure foundations.
Solve Infrastructure Imperatives to Be Data and AI Ready
There is no AI without data. And new business value
won’t be unlocked without AI. In order to be data
and AI ready, businesses must solve for five key
infrastructure design imperatives.
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3. | 3
Are You Data and AI Ready? | Table of Contents
Chapters
1
Setting the Stage
Digital transformation creates a
$100 trillion opportunity.1
It also
creates infrastructure challenges with
data exchange and platform growth.
2
Solving the Problem
Rapid data creation and escalating
needs for storage and processing
capacity put tremendous strain
on legacy infrastructure, limiting AI
abilities and digital transformation.
3
Key Takeaways
To be data and AI ready,
businesses must solve for five
key infrastructure design imperatives.
¹World Economic Forum, $100 Trillion by 2025: the Digital Dividend for Society and Business, January, 2016
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4. | 4
Setting the Stage
Digital transformation creates a $100 trillion
opportunity.1
It also creates infrastructure challenges
with data exchange and platform growth.
¹World Economic Forum, $100 Trillion by 2025: the Digital Dividend for Society and Business, January, 2016
Chapter 1
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5. | 5
Digital transformation
generates an unrealized
opportunity for all companies,
irrespective of size.
In fact, the World Economic Forum
estimates $100 trillion of incremental
Gross Domestic Product (GDP) could be
secured through digital transformation.1
Unrealized Opportunity
$100 trillion
Mining and Metals
Aviation
Healthcare
Oil and Gas
Telecommunications
Travel and Tourism
Logistics
Professional Services
Automotive
Chemistry and Materials
Media
Retail
Consumer
Electricity
Are You Data & AI Ready? I Setting the Stage
¹World Economic Forum, $100 Trillion by 2025: the Digital Dividend for Society and Business, January, 2016
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6. | 6
In recent years, global
economies transformed
from being physical-powered
to digital-powered.
And now, we are in the next phase, transforming
to become ‘data-powered’ – with high-density
data fueling economic growth.
With increased digitization*, the physical
economy has shifted to a digital economy,
which is now entering a new form:
the data economy.
¹Bureau of Economic Analysis, Value Added by Industry, December, 2023
2
IDC, 2021 U.S. Data Valuation by Industry Vertical, December, 2022
*Accelerated by widespread use of technology, e.g. connectivity, internet, mobile, cloud, analytics, data,
social, artificial intelligence, and machine learning
Physical to digital to data economy
In 2022, 2/3 of the US GDP (17 Trillion) Based on Data Density1,2
1930
1940
1950
1960
1970
1980
1990
2000
2010
2020
2022
25.5T
17.2T
8.2T
High Data Density Output
Low Data Density Output
PHYSICAL
Economy
DIGITAL
Economy
DATA
Economy
Physical to digital to data economy
Are You Data & AI Ready? I Setting the Stage
Fig. 1: Bureau of Economic Analysis, Value Added by Industry, December, 2023
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7. | 7
The data economy stems
from the abundance of
data created from digital
interactions, driven by fast
growing technologies,
including mobile, social, IoT,
and AI/machine learning.
As a result, the physical locations at the
centers of trade are also now centers
of enterprise data creation, processing,
and exchange.
¹IDC, Worldwide Datasphere, December 2023-2027
2
Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
Data economy drives explosive data growth1,2
.004ZB
2010 2020 2023 2025
0
20
40
60
80
100
120
140
160
180
200
64ZB
4ZB
180ZB
ZETABYTES
Data economy drives explosive data growth1
CAGR
535%
Are You Data & AI Ready? I Setting the Stage
Fig. 2: IDC, Worldwide Datasphere, December 2023-2027
Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
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8. | 8
With the advent of this
data growth, the locations
where data is created,
processed, and stored
are rapidly changing.
While many businesses have undertaken
cloud migration for their data systems,
new points of data generation – such as
the rapid growth of enterprise AI adoption
– along with security and compliance
requirements have intensified data creation
and processing at the edge.
The growth of data represents a significant
shift in how data is created, processed,
stored, and exchanged.
Data economy shifts data flows1,2
0
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Endpoint - Create Edge - Create Core - Create Endpoint - Store Edge - Store Core - Store
¹IDC, Worldwide IDC Global DataSphere Forecast, 2023-2027: It’s a Distributed, Diverse, and Dynamic (3D) DataSphere, April, 2023
2
IDC, Worldwide Global StorageSphere Forecast, 2023-2027: Despite Decreased Petabyte Demand Near Term, the Installed Base of Storage Capacity
Continues to Grow Long Term, May, 2023
Are You Data & AI Ready? I Setting the Stage
Fig. 3: IDC, Worldwide IDC Global DataSphere Forecast, 2023-2027: It’s a Distributed, Diverse, and Dynamic (3D) DataSphere, April, 2023
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The Data Economy
Creates New Interactions
As data creation and utilization grows,
it attracts applications and services, and
as its density grows, it limits movement.
This data creation lifecycle creates a new
behavior for digital interactions and is the
force multiplier that creates Data Gravity.
As Data Gravity increases, special
consideration should be given to how
infrastructure and data sets are deployed
and connected.
¹Patented Data Gravity Formula, McCrory & Bishop, Digital Realty
Data growth attracts applications and services1
Data growth a�racts applications & services1
DATA
SERVICES APPS
THROUGHPUT
LATENCY
Are You Data & AI Ready? I Setting the Stage
Fig. 4: Patented Data Gravity Formula, McCroy & Bishop, Digital Realty
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10. | 10
Current IT Architectures
Don’t Take Data Gravity
into Account
Rapid data creation and escalating needs
for storage and processing capacity put
tremendous strain on legacy servers
and applications.
As data volumes experience rapid growth,
it is no longer feasible to support existing
application flows in a performant manner.
The cost of transport and increasing latency
associated with larger data and AI-intensive
flows and centralized data storage make
legacy architectures unsustainable.
Thus, existing architectures are not
data and AI ready.
¹Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
IT Infrastructure today1
IT Infrastructure today1
IN THE CLOUDS
AT THE EDGE
Sends data to
the clouds
Receives data
slowly
Applications
and Capacity
Users and
Things
Are You Data & AI Ready? I Setting the Stage
Fig. 5: Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
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Data Gravity Requires
New Architecture
A new architecture is required to overcome
infrastructure challenges with data exchange
and platform growth.
Data and AI-ready architectures must be
distributed, data-centric, and hybrid. This
inverts traffic flow, leverages interconnection
and brings clouds and users to the data, to
integrate private and public data sources.
A strategy that incorporates these elements
will make your business data and AI ready.
1
Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
Data and AI-ready architecture1
Data and AI-ready architecture2
Bring clouds
to the data
Bring users
to the data
IN THE CLOUDS
Applications
and Capacity
AT THE EDGE
Users and
Things
Are You Data & AI Ready? I Setting the Stage
Fig. 6: Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
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12. Are You Data & AI Ready? I Section Name
| 12
Solving the Problem
Rapid data creation and escalating needs for
storage and processing capacity put tremendous
strain on legacy infrastructure, limiting AI abilities
and digital transformation.
Chapter 2
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13. | 13
Deploy Centers of
Data Exchange at
Points of Presence
Enterprises need to serve customers,
partners, and employees across all
channels, business functions, and points
of business presence. This is forcing IT
to implement a distributed infrastructure
that removes Data Gravity barriers to
accommodate data and AI-intensive
workflows that vary by participant,
application, information, and location-
specific needs.
Companies who combine this strategy
with a Pervasive Datacenter Architecture
(PDx®) methodology can optimize data
exchange, enabling distributed workflows
at global points of presence.
Deployed at points of presence
Deployed at points of presence
Are You Data & AI Ready? I Solving the Problem
Fig. 7: Digital Realty, Pervasive Datacenter Architecture (PDx)®, 2021
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14. | 14
Digital Infrastructure Foundations
Today’s business and technology leaders require
a business platform that operates ubiquitously
and on-demand, augmented by real-time
intelligence to best serve customers, partners,
and employees via digitally-enabled interactions
across all channels, business functions, and
points of presence.
By 2027, more than 75% of Fortune 1000
companies will have formal infrastructure
platform organizations, up from less than
20% in 2023, to enable their digital strategies.1
Enabling platform growth and AI-ready
architecture requires digital infrastructure
foundations supporting four strategic
IT priorities, including:
• Network
• Security
• Compute
• Data
These foundations will enable you to solve
digital transformation in today’s data economy,
by placing, deploying, and connecting your
network, data, and security locally, in the
zones where you do business globally.
¹Gartner®, Modernizing Infrastructure Platforms and Operating Models in Support of Digital
Foundations, June, 2023
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the
U.S. and internationally and is used herein with permission. All rights reserved.
DATA
NETWORK
SECURITY
COMPUTE
Are You Data & AI Ready? I Solving the Problem
Fig. 8: Digital Realty, Pervasive Datacenter Architecture (PDx)®, 2021
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Digital Infrastructure
Foundation: Network
Enterprises require a new network
infrastructure architecture that reduces latency,
localizes access to data, standardizes network
deployments, and provides any-to-any
interconnection.
To enable this data and AI-ready architecture,
enterprises need to create local ingress and
egress points in colocation to:
• Consolidate and localize traffic
• Segment and tier traffic
• Interconnect network, cloud and
service providers
• Deploy, interconnect, host SDN edge
1
Cisco, Cisco AI Readiness Index, 2023
2
Digital Realty Marketing Intelligence, Global Data Insights Survey, 2022
Insights
• Most (79%) companies have challenges
with network latency to support demanding
AI workloads1
• 77% of IT leaders identified data latency
specific performance requirements2
Implications
1. Network traffic is shifting
2. Companies must establish network foundation
to connect data, users, and applications
3. Requires local ingress/egress points to support
demanding data and AI workloads
4. Pressure to optimize and manage network
infrastructure
5. Legacy networking for critical infrastructure
is inflexible and costly
Strategy
Create local ingress/egress points in colocation
Network Foundation
Connect data, users, and applications
Are You Data & AI Ready? I Solving the Problem
Take the next step
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16. | 16
Digital Infrastructure
Foundation: Security
Enterprises require a new security
infrastructure architecture that allows them
to secure controls and infrastructure in a
distributed manner and unlocks seamless
global security. To enable this data and
AI-ready architecture, Enterprises need
to secure, control, and protect infrastructure
in order to:
• Implement ingress/egress control points
• Host IT and security stacks at ingress/
egress points
• Securely, direct connect SAAS security/
data services
• Enhance security posture/reduce
vulnerability points
1
Cybersecurity Ventures, 2022 Official Cybercrime Report, 2022
2
Gartner Press Release, Gartner Forecasts Global Security and Risk Management Spending to
Grow 14% in 2024, September, 2023
Security Foundation
Secure, control, and protect infrastructure
Insights
• By 2025, the global cost of cybercrime
will reach US $10.5T annually1
• Global spending on security and risk
management projected to reach
$215 billion next year2
Implications
1. Requires companies to colocate and
interconnect digital infrastructure foundations
to secure, control, and protect infrastructure
2. Needs IT strategy to operationalize
distributed access points
3. Lengthy time-to-deploy security controls
across footprint
4. Security difficult to manage across
complex infrastructure
5. Geographically disperse
Are You Data & AI Ready? I Solving the Problem
Operationalize distributed security access points in colocation
Strategy
Take the next step
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17. | 17
Digital Infrastructure
Foundation: Compute
Enterprises require a new secure Hybrid IT
architecture with compliant data governance
practices that enable them to transact,
process, and enable insights.
To enable data and AI readiness, Enterprises
require a distributed infrastructure architecture
designed to:
• Host analytics adjacent to network and
data aggregation points
• Accelerate compute-intensive workloads
with GPU/DPU
• Enable microservices with virtualization
and containers
• Scale processing with clustering and
high-performance interconnects
¹Digital Realty Market Intelligence, Data Gravity Index (DGx)™ 2.0, 2023
2
Gartner Press Release, Gartner Says 50% of Critical Enterprise Applications Will Reside Outside of
Centralized Public Cloud Locations Through 2027, October, 2023
Compute Foundation
Transact, process, and enable insights
Insights
• Majority of enterprise data is created
and utilized outside the public cloud1
• At least half of critical enterprise
applications will live outside of the
public cloud through 20272
Implications
1. Legacy IT inhibits modern HPC use case
implementation and is capital-intensive,
hardware-oriented
2. Hybrid and multi-cloud deployments
decrease infrastructure costs and IT labor
3. Complex hybrid and multi-cloud workload
performance and scalability issues
4. Requires hybrid multi-cloud IT architecture
to support the increasing scale and
complexity of data
5. Inefficient access to other cloud capabilities
may delay business innovation
Are You Data & AI Ready? I Solving the Problem
Host applications and optimize for workloads and scale
Strategy
Take the next step
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18. | 18
Digital Infrastructure
Foundation: Data
Enterprises require a new data infrastructure
architecture that localizes data aggregation,
staging, analytics, streaming, and management
at global points of business presence.
To enable data and AI readiness, Enterprises
require a distributed infrastructure architecture
designed to:
• Host data adjacent to network and
analytics aggregation points
• Optimize data exchange between users,
things, networks, and clouds
• Enable real-time intelligence across
distributed workflows locally and globally
• Create secure B2B data exchange to
unlock new business opportunities
1Cisco, Cisco AI Readiness Index, 2023
2
Digital Realty Marketing Intelligence, Global Data Insights Survey, 2022
Data Foundation
Localize, integrate, and manage data
Insights
• 81% of respondents admit that their data
exists in silos across their organizations1
• 72% plan to add new business locations in
the next two years2
Implications
1. Distributed data workflows non-performant
on legacy hardware and applications
2. Requires increase in points of business
presence to localize, integrate, and
manage data
3. Requires distributed data location strategy
to enable AI-ready infrastructure
4. Reduced performance due to traffic,
increased latency and data backhaul
5. Explosive cost associated with data
transit cost
Are You Data & AI Ready? I Solving the Problem
Take the next step
Localize data sets for secure data exchange in colocation
Strategy
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19. | 19
LEGEND Security Data Clouds
Networks
Compute
Center of Data Exchange
DATA
NETWORK
SECURITY
COMPUTE
Proven Approach:
Enable Data and
AI-Ready Architecture
With our PDx® Solutions, you can now colocate and
interconnect digital infrastructure foundations locally
to enable centers of data exchange:
Network – Connect data, users, and applications
Security – Secure, control, and protect infrastructure
Compute – Transact, process, and enable insights
Data – Localize, integrate, and manage data
It is typical to have multiple footprints deployed
in multiple zones to support the demands of data
and AI-intensive workloads. When deployed on a
single global data center platform, PlatformDIGITAL®,
our PDx® methodology enables data and AI-ready
architecture locally, in the zones where you do
business globally.1
1
PlatformDIGITAL® is the largest, interconnected global data center platform according to 451 Research,
Market Forecast, Leased Datacenter Global Providers, 2023
Capacity measured in terms of operational square footage.
Are You Data & AI Ready? I Solving the Problem
Fig. 9: Digital Realty, Pervasive Datacenter Architecture (PDx)®, 2021
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20. Are You Data & AI Ready? I Section Name
| 20
Key Takeaways
To be data and AI ready, businesses must solve
for five key infrastructure design imperatives.
Chapter 3
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21. | 21
Infrastructure
Design Imperatives
To be data and AI ready, businesses need
an infrastructure architecture that solves
for these key design imperatives.
Solve For:
Latency
Latency is the factor
most associated with
performance of
modern applications.
Apps, services, and
data needs to be
brought to the data
to minimize latency.
Risk
Failure to manage
risk can result in
damage to a
business’ reputation,
or even financial
penalty. Remove
risk by using proven,
validated solutions.
Complexity
When not contained,
complexity adds
cost to projects
and can result in
inadvertent issues.
Reduce complexity
by leveraging
preintegrated
solutions.
Capacity
It’s difficult if not
impossible to
accurately size
new applications
and systems.
Businesses
need infrastructure
than can efficiently
scale up or down.
Sustainability
Sustainability
matters. Building
performant
infrastructure
sustainably requires
expertise and
experience.
Are You Data & AI Ready? I Key Takeaways
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22. | 22
Interested in learning more?
Email sales@digitalrealty.com
Gather Location Data
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List Data/Performance Incidents
At Your Desk Tomorrow
1 Request a Strategy Briefing
2 Engage in a Solution Workshop
3 Co-Produce a Validated Design
4 Co-Develop an Implementation Plan
Getting Started Together
Are You Data & AI Ready? I Key Takeaways
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23. About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center,
colocation, and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform,
provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture
(PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges.
Digital Realty gives its customers access to the connected data communities that matter to them with
a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.
To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
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forward-looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to Pervasive Datacenter Architecture (PDx®),
Data Gravity IndexTM
, Data Gravity Index (DGx)TM
, and PlatformDIGITAL®. For a list and description of such risks and uncertainties, see Digital Realty’s reports and other filings with the U.S. Securities and Exchange Commission.
Digital Realty disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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