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(Credit: Walden Kirsch/Intel Corporation)
After a difficult few quarters, Intel has announced that it will cancel its super-sized R&D laboratory at its Hillsboro campus. The facility would have enabled Intel to conduct research on sustainable data centers and innovative ways of cooling, heating, and using water. Pat Gelsinger, CEO of Intel, announced the new mega lab measuring 200,000 square feet in May. The company will save approximately $700 million by removing the research center.
We are trying to cut costs and improve efficiency through multiple initiatives. Penelope Bruce, an Intel spokesperson, said that the company is looking at more cost-effective realty options in order to continue its data center R&D work in Oregon. According to the spokesperson, the company will continue to find a way for this research. However, it won't be at its Hillsboro facility which is located 20 miles from Portland.
This is part of a $3 billion spending reduction plan for the company in 2023. Like the rest of the industry Intel has seen declining revenues in the last year and there is no indication that it will slow down. Between 2021 and 2022, its sales dropped between 16 percent and 20 percent annually.
Artist rendering of the proposed R&D centre for Intel. (Credit: Intel)
A massive liquid immersion cooling system was one of the key technologies Intel wanted to put in place at the center. Although this type of cooling technology is known for many years, it has rarely been used at the scale required for data centers. According to The Register, Intel was looking into creating an "open-reference design" that other companies could use. This elaborate cooling might prove useful in the future, given its new fourth-generation "Sapphire rapids" CPUs that consume 350W. This center was intended to be a "tech showroom" where Intel could show its innovative technologies to its partners.
It is currently unknown when and where Intel will build this facility. Inflation could be a factor that may hinder its future plans. The Register reports that Arizona's planned expansion has seen its cost rise by 50% over the same period last year. It wouldn't surprise us if the company decided to put off the expansion. Gelsinger stated that it will reduce spending by $10 million annually by 2025. This will require some difficult decisions.
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By: Josh Norem
Title: Intel Cancels Plans for Sustainable Data Center R&D Facility in Oregon
Sourced From: www.extremetech.com/computing/342561-intel-cancels-plans-for-sustainable-data-center-rd-facility-in-oregon
Published Date: Wed, 25 Jan 2023 14:42:47 +0000
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