Dell COO Says Agentic AI Is Forcing Data Center Rebuild

Dell says agentic AI is driving a rethink of data center design as token use and inference demand surge.

COO Jeff Clarke argued cloud-only AI setups are becoming less practical under rising cost, latency, governance, and scale pressures.

Dell is leaning into on-prem and hybrid infrastructure with AI-optimized servers and a local agentic AI platform.

The company says AI server demand remains strong, reinforcing a broader shift toward enterprise-owned AI infrastructure.