NexGen Cloud Deploys AI Power Platform to Unlock Data Center Capacity
March 12, 2026
As the global surge in artificial intelligence computing places unprecedented strain on power grids and data center infrastructure, operators are seeking innovative solutions to maximize efficiency. NexGen Cloud, a neocloud provider, has taken a significant step by deploying Utilidata's Karman AI power orchestration platform across its data center footprint. This move addresses a critical industry bottleneck, aiming to extract more computational work from existing power allocations.
The deployment involves integrating the Karman AI platform, which runs on a custom Nvidia module, into NexGen Cloud's operations. The platform provides real-time, rack-level power optimization by sampling data over 1 million times per second and responding with sub-20 millisecond latency. NexGen Cloud claims this technology can increase the usable AI compute capacity within its already deployed infrastructure by up to 50 percent, effectively unlocking trapped capacity in a grid-constrained environment.
The initial rollout is at the company's Montreal data center, with plans to extend across all its European operations. This expansion will benefit customers of its AI cloud platform, Hyperstack, potentially enabling lower pricing through improved efficiency. Following the European deployment, NexGen Cloud intends to implement Karman AI in its planned data center projects across North America and the Nordics, which are projected to represent a total capacity of hundreds of megawatts.
Industry leaders emphasized the strategic importance of this technology. "Power is the single biggest constraint for AI growth today. Billions of dollars of existing capacity are underutilized in data centers worldwide," said Josh Brumberger, CEO of Utilidata. "Karman unlocks that trapped capacity immediately while ensuring new data centers are optimized from day one."
Chris Starkey, CEO of NexGen Cloud, highlighted the commercial and operational imperative. "We now live in a world where 100MW+ projects are becoming commonplace. For infrastructure providers... the next critical factor is energy management—specifically, maximizing the capacity already on-site," Starkey stated. "Karman gives us a significant commercial advantage by unlocking that trapped capacity; proving this level of optimization is a benefit we can then carry over directly to our end customers."
Founded in 2020, NexGen Cloud launched its Hyperstack platform in late 2023 and secured $45 million in Series A funding in April 2025. The company has previously announced ambitious plans to invest $1 billion in an "AI supercloud." The widespread adoption of AI power management platforms like Karman could set a new standard for data center efficiency, allowing the industry to scale AI capabilities more sustainably without immediately requiring proportionally larger power draws from often overburdened electrical grids.
Source: datacenterdynamics
