Observability is essential as AI introduces new challenges for data centers. With Observability, CIOs can monitor, analyze and optimize in real time, ensuring systems remain scalable, reliable, and high-performing in increasingly complex AI-driven environments.
The meteoric rise of generative AI (GenAI) has cast a magnifying glass on the most existential challenges of our time: upskilling a global workforce, meeting global energy demands, and navigating the ethical use of new technology–all while safeguarding the future of our planet.
GenAI’s transformation is well underway—Industry research firm EMA reports 68% of organizations now leverage AI tools for anomaly detection, root cause analysis, and real-time threat detection. 81% of enterprises plan to increase their AI investments in the coming year.
The immediate priority for businesses has now become the need to evolve their data centers to meet the new demands of AI on computational power, data storage, and operational efficiency.
The role of AI in data center transformation
Powering large language models (LLMs) that fuel GenAI requires immense data processing capabilities and advanced IT infrastructure, including vast storage systems, networks, applications and clouds to handle the enormous datasets involved in training and inference.
The computational intensity is pushing data centers to their limits, straining infrastructure and driving up operational costs. As a result, CIOs are racing to evolve their data centers with important decisions about workload balancing across their hybrid or multi-cloud environments. IT leaders are re-thinking where to store larger data volumes to optimize costs, maintain data privacy, while also considering compliance standards like GDPR.
Using AI to power end-to-end observability
AI is not only a driver of technological innovation; it is also crucial for optimizing the efficiency of data centers and the infrastructure within, plus the workforce behind technology management. AI-powered observability platforms, like those offered by LogicMonitor, are transforming how organizations monitor and manage data centers, as well as how IT operations teams work.
Optimizing data center performance
As data centers increasingly adopt hybrid and multi-cloud architectures, unified visibility across all environments—on-premises and cloud—becomes mission critical. End-to-end observability delivers insights needed to optimize performance and troubleshoot issues across distributed workloads. Embedding AI into this approach enables predictive problem-solving, costs reduction, lower energy consumption, and automated IT operations.
Empowering the IT workforce
Beyond transforming infrastructure, AI revolutionizes how IT teams operate. Instead of spending their days manually investigating huge volumes of alerts and troubleshooting basic issues, teams can focus on initiatives that drive business value—like optimizing infrastructure performance, accelerating digital transformation projects, and implementing innovative solutions that improve service delivery.
Harnessing the power of AI sustainably
Business leaders face a critical balancing act: accelerating technological innovation while meeting ambitious sustainability targets. As AI services expand, their growing energy demands are reshaping infrastructure discussions, including renewed interest in nuclear power solutions., With stringent EU regulations mandating improved energy efficiency, organizations must carefully monitor and optimize their environmental impact. AI itself offers a powerful solution to this complex challenge.
AI-powered observability delivers comprehensive energy monitoring—from real-time workload tracking to predictive cooling optimization—enabling organizations to reduce power consumption while maintaining performance and meeting sustainability goals.
The next era of the CIO
Today’s CIO is tasked with driving innovation, minimizing business risk and IT costs, while managing sustainable, efficient IT infrastructures. As AI transforms data centers, they will need to partner with AI-powered solutions to optimize performance, ensure security, and reduce costs. LogicMonitor’s mission is to deliver the AI-enabled observability platform CIOs need to thrive in this new era, transforming how organizations monitor, manage, and optimize their digital operations. When data center challenges turn into opportunities for innovation, organizations can build a more efficient, sustainable, and AI-powered future.
Find out more about DAVOS 2025 Campaign
