Data Center

Evaluating the Impact of Networking Protocols on AI Data Center Efficiency: Strategies for Industry Leaders

Rohan Sheth

March 24, 2025

4 Min Read

evaluating-the-Impact-of-Networking-Protocols-on-AI-Data-Center-Efficiency

Network transport accounts for up to 50% of the time spent processing AI training data. This eye-opening fact shows how network protocols play a vital role in AI performance in modern data centers.

According to IDC Research, generative AI substantially affects the connectivity strategy of 47% North American enterprises in 2024. This number jumped from 25% in mid-2023. AI workloads need massive amounts of data and quick, parallel processing capabilities, especially when you have to move data between systems. Machine learning and AI in networking need specialised protocols. These protocols must handle intensive computational tasks while maintaining high bandwidth and ultra-low latency across large GPU clusters.

The Evolution of Networking in AI Data Centers

Networking in AI data centers has evolved from traditional architectures designed for general-purpose computing to highly specialised environments tailored for massive data flows. In the early days, conventional Ethernet and TCP/IP-based networks were sufficient for handling enterprise applications, but AI workloads demand something far more advanced. The transition to high-speed, low-latency networking fabrics like InfiniBand and RDMA over Converged Ethernet (RoCE) has been driven by the need for faster model training and real-time inference. These technologies are not just incremental upgrades; they are fundamental shifts that redefine how AI clusters communicate and process data.

AI workloads require an unprecedented level of interconnectivity between compute nodes, storage, and networking hardware. Traditional networking models, designed for transactional data, often introduce inefficiencies when applied to AI. The need for rapid data exchange between GPUs, TPUs, and CPUs creates massive east-west traffic within a data center, leading to congestion if not properly managed. The move toward next-generation networking protocols has been an industry-wide response to these challenges.

One of the most critical factors influencing AI data center efficiency is the ability to move data quickly and efficiently across compute nodes. Traditional networking protocols introduce latency primarily due to congestion, queuing, and CPU overheads. However, AI models thrive on fast, parallel data access. Networking solutions that bypass traditional bottlenecks such as RDMA, which allows direct memory access between nodes without involving the CPU have revolutionised AI infrastructure. Similarly, the adoption of InfiniBand, with its high throughput and low jitter, has become the gold standard for hyperscale AI deployments.

Overcoming Bottlenecks in AI Networking

Supporting AI workloads requires more than just space and power. It demands a network architecture that can handle the explosive growth in data traffic while maintaining efficiency. Traditional data center networking was built around predictable workloads, but AI introduces a level of unpredictability that necessitates dynamic traffic management. Large-scale AI training requires thousands of GPUs to exchange data at speeds exceeding 400 Gbps per node. Legacy Ethernet networks, even at 100G or 400G speeds, often struggle with the congestion these workloads create.

One of the biggest challenges data centers face is ensuring that the network can handle AI’s unique traffic patterns. Unlike traditional enterprise applications that generate more north-south traffic (between users and data centers), AI workloads are heavily east-west oriented (between servers inside the data center). This shift has necessitated a complete rethinking of data center interconnect (DCI) strategies.

To address this, data centers must implement intelligent traffic management strategies. Software-defined networking (SDN) plays a crucial role by enabling real-time adaptation to workload demands. By dynamically rerouting traffic based on AI-driven analytics, SDN ensures that critical workloads receive the bandwidth they need while preventing congestion. Another key advancement is Data Center TCP (DCTCP), which optimises congestion control to reduce latency and improve network efficiency.

Additionally, network slicing, a technique that segments physical networks into multiple virtual networks, ensures that AI workloads receive dedicated bandwidth without interference from other data center operations. By leveraging AI to optimise AI—where machine learning algorithms manage network flows—data centers can achieve unparalleled efficiency and cost savings.

Data centers must also consider the broader implications of AI networking beyond just performance. Security is paramount in AI workloads, as they often involve proprietary algorithms and sensitive datasets. Zero Trust Networking (ZTN) principles must be embedded into every layer of the infrastructure, ensuring that data transfers remain encrypted and access is tightly controlled. As AI workloads increasingly rely on multi-cloud and hybrid environments, data centers must facilitate secure, high-speed interconnections between on-premises, cloud, and edge AI deployments.

Preparing for the Future of AI Networking

The future of AI-driven data center infrastructure is one where networking is no longer just a supporting function but a core enabler of innovation. The next wave of advancements will focus on AI-powered network automation, where machine learning algorithms optimise routing, predict failures, and dynamically allocate bandwidth based on real-time workload demands. Emerging technologies like 800G Ethernet and photonic interconnects promise to push the limits of networking even further, making AI clusters more efficient and cost-effective.

For data center operators, this means investing in scalable network architectures that can accommodate the next decade of AI advancements. The integration of quantum networking in AI data centers, while still in its infancy, has the potential to revolutionise data transfer speeds and security. The adoption of disaggregated networking, where hardware and software are decoupled for greater flexibility, will further improve scalability and adaptability.

For industry leaders, the imperative is clear: investing in advanced networking protocols is not an optional upgrade but a strategic necessity. As AI continues to evolve, the ability to deliver high-performance, low-latency connectivity will define the competitive edge in data center services. The colocation data center industry is no longer just just about providing infrastructure; it is about enabling the AI revolution through cutting-edge networking innovations. The question is not whether we need to adapt it is how fast we can do it to stay ahead in the race for AI efficiency.

Conclusion

Network protocols are the building blocks that shape AI performance in modern data centers. Several key developments show the rise from conventional networking approaches:

1. RDMA protocols offer ultra-low latency advantages, particularly through InfiniBand architecture that reaches 400Gb/s speeds

2. Protocol-level congestion control systems like PFC and ECN make sure networks run without loss – crucial for AI operations

3. Machine learning algorithms now fine-tune protocol settings automatically and achieve 1.5x better throughput

4. Ultra Ethernet Consortium breakthroughs target AI workload needs specifically and cut latency by 40%

The quick progress of AI-specific protocols suggests more specialised networking solutions are coming. Traditional protocols work well for general networking needs, but AI workloads need purpose-built solutions that balance speed, reliability, and expandable solutions. Data center teams should assess their AI needs against available protocol options carefully. Latency sensitivity, deployment complexity, and scaling requirements matter significantly. This knowledge becomes crucial as AI keeps changing data center designs and needs more advanced networking solutions.

Rohan Sheth

Head of Colocation & Data Center Services

With over 17 years of extensive experience in the real estate and data center industry, Rohan has been instrumental in driving key projects including large-scale colocation data center facilities. He possesses deep expertise in land acquisition, construction, commercial real estate and contract management among other critical areas of end-to-end development of hyperscale data center parks and built-to-suit data center facilities across India. At Yotta, Rohan spearheads the data center build and colocation services business with a focus on expanding Yotta’s pan-India data center footprint.

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