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AI factories are more than the sum of the GPU clusters that make up their core; they have become an operational model and architecture designed to turn data into AI systems at scale. They are also, according to Epoch AI, globally consuming as much power as New York State, or around 30GW of electricity based on the power consumption of all the chips sold by manufacturers as of 2025.

Data, models and workflows are centralised in an AI factory, running through a lifecycle from ingestion to intelligence and are measured in terms of tokens per megawatt. Nvidia was the first to introduce the concept at its GPU Technology Conference in 2025, and to define how the infrastructure of the AI factory is focused on providing organisations with the best way to extract value from their data.