Why AI is forcing a rethink of virtualization

Posted: 20th Jul 2026

Companies are seeking more adaptable ways to run applications, govern data, and control costs as AI workloads grow.

AI’s voracious compute appetite is putting a physical and financial strain on the systems that support it. Research forecasts that U.S. data center power demand will more than double in 2027, driven by the buildout of AI infrastructure.Companies ramping up enterprise AI workloads must now contend with the time, cost, performance, and power demands of running them. This is driving a rethink of virtualization, the technology that allows multiple applications and operating environments to use shared computing resources. This industry-wide reassessment is seeing businesses seek more adaptable, open models that offer greater control and reduce vendor lock-in.

 

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