AI data centers are booming. What HR needs to know.


The rapid expansion of AI is impacting both technology infrastructure and workforce strategies. Massive investments, high energy demands and environmental considerations mean HR leaders must plan appropriately for this new era.

I’ve spent a lot of time learning about the AI built into (or added onto) HR tech products. While the problem-solving capabilities of new tech rightfully get most of the attention, the power behind it also deserves a peek under the hood.

This month, Oracle introduced OCI Zettascale10, the world’s largest AI cloud supercomputer, built with NVIDIA GPUs to power multi-gigawatt AI workloads. Developed in collaboration with OpenAI in Abilene, Texas, the system forms a key part of the Stargate initiative, announced at the White House earlier this year.

But what exactly is it? OCI Zettascale10 connects hundreds of thousands of NVIDIA GPUs across multiple data centers, forming massive clusters capable of delivering up to 16 zettaFLOPS of peak performance, an unprecedented measure of supercomputing power.

For many people, this might sound like jargon (or nonsense). That’s how it sounded to me at first, so I did some research. According to the U.S. Department of Energy, one gigawatt is equal to the power of 1.3 million horses, or 100 million LED lightbulbs.

So why should HR teams care? AI data centers consume enormous amounts of power, often exceeding the capacity of local grids. On stage at Oracle AI World, Matthew Finnegan, president and CEO of Berkshire Hathaway Energy Renewables, said that the AI rush has been a “massive opportunity” for his organization. “A big part of our growth is data centers,” he added.

For HR leaders, this growth underscores two major imperatives: attracting and developing the technical and sustainability talent needed to support AI infrastructure, and ensuring their organizations meet rising expectations around environmental responsibility and ESG commitments. As AI accelerates, HR will play a central role in building the workforce strategies that make this expansion both sustainable and ethical.

Data centers and energy use

This high energy usage creates environmental challenges. Experts say the U.S. power sector will need significant, ongoing capital investments over the next two to three decades to meet growing electricity demands. Deloitte estimates these investments could total $1.4 trillion between 2025 and 2030, with comparable spending continuing through 2050.

AI servers use much more power than traditional servers. According to Enconnex, a global manufacturer of data center and IT infrastructure products, data center cooling systems account for 30% to 55% of the total facility’s power consumption. This means running and cooling AI servers is expensive, driving higher energy bills and greater cooling needs.

HR tech in the news

Viven co-founders Varun Kacholia and Ashutosh Garg
Viven co-founders Varun Kacholia and Ashutosh Garg

Eightfold founders Varun Kacholia and Ashutosh Garg launched Viven, an AI startup that creates digital twins, with $35M in seed funding led by Khosla Ventures and Foundation Capital. The platform replicates users digitally for work and personal management, with tens of thousands of enterprise employees already onboard globally.

Findem, an AI-powered talent acquisition and workforce management platform, raised $51M, including a Series C led by SLW, bringing total funding to $105M. The company has grown 3X YoY and earned recognition from Inc., Fortune, and Fast Company as highly innovative.

Online employment marketplace ZipRecruiter reports U.S. employee turnover fell from 177% in 2023 to 50% in 2025, signaling growing labor market stability. Nearly two-thirds of businesses plan to increase hiring in the year ahead. Entry-level roles are expected to see the most growth as the “Great Freeze” of workforce movement begins to thaw.

Vestwell, a fintech providing retirement plan solutions, launched Vestwell Elite, a pooled employer plan that simplifies 401(k) management, reduces fiduciary risk, and expands access. Built with FuturePlan and Wilshire Advisors, it helps advisors scale practices and supports employers in offering modern retirement benefits.

Business data intelligence provider InformData added risk scores to its Connect platform, standardizing risk assessment by charge recency and severity. The enhancement delivers transparent, consistent monitoring to evaluate individual risk for employees and partners better.

ServiceNow introduced AI agents unifying HR, IT and finance workflows. Features include a single AI front door, 24/7 AI voice support, and a 2026 HR business partner hub that flags attrition risks and automates manager outreach.

More HR tech investments and announcements

Papaya Global, a workforce payments and HR technology company, partnered with Andersen to simplify global mobility payroll. The alliance combines Andersen’s tax expertise with Papaya’s Workforce OS, streamlining operations and compliance for HR, payroll and mobility teams.

Global payroll and HR platform Deel announced AI-powered product updates covering payroll, benefits, HR year-end planning and agent creation. The tools enhance automation and enable organizations to scale HR operations while improving employee experiences.

Earned wage access provider Rain launched a Paylocity integration, giving 41,650 clients access to on-demand wages. Employees can now join over 3.5 million workers using Rain to ease financial strain between paychecks.

Kolbe Corp, a strengths-based performance solutions company, found that 42% of employees spend at least one full day weekly on “misfit work,” which is misaligned with their natural strengths. The productivity drain increases stress, reduces retention and affects organizations across industries globally.

Edward Jones, a financial services firm, expands its retirement plan offerings with Nationwide and Voya by investing in tech like Aboon and Addition Wealth. The move enhances advisors’ ability to deliver financial wellness, simplify plan administration, and support employees of local business clients nationwide.

Lattice, a people management and performance platform, unveiled Lattice Habits and AI Agent Plus. These aim to centralize goals, feedback and 1:1s while delivering context-aware coaching.

More HR tech happenings

Resume Now, a career and HR insights provider, found that 56% of U.S. workers see AI’s role in compensation decisions growing over the past three years. However, the report’s authors say trust depends on transparency, oversight and human review of algorithms.

Envoy, a workplace technology platform, introduced Envoy Screens, a digital signage solution for safety, compliance and real-time communication. Teams can centrally manage displays, push alerts instantly and maintain auditable records without legacy systems.

Recruitment marketing services firm HireClix launched Recruiter Hub, giving recruiters custom landing pages to showcase job openings. The tool is designed to give candidates a tailored, consistent journey from first click to application.

iCIMS, a talent acquisition software company, released AI Sourcing Agent. The tool aims to automate talent discovery, matching and engagement while keeping recruiters in control. Updates include behavior-based outreach, interview scheduling improvements and turnkey integrations.

Staffbase employee experience platform has partnered with Cornerstone, a workforce agility solutions provider, to integrate AI-powered training and learning into its Employee App. Starting in 2026, shared customers will gain personalized learning hubs, smart reminders and easy content discovery for frontline workers.

HR people moves

The Vitamin Shoppe, a specialty retailer of nutritional products, appointed Kate Vukelich as EVP and Chief People Officer. She brings 20+ years of HR and retail experience, most recently transforming Everlane’s People function, culture and operations.

WisdomTree, a financial services and investment management firm, appointed Beena Joseph as Global Head of HR. A decade-long company veteran, Joseph strengthened HR practices in Europe. She has ensured human resources remain central to company culture and global growth strategies.

Workforce mental health and performance platform meQuilibrium (meQ) announced its 2025 Resilience Awards winners. Roman Grubbs, Ph.D., of Charles River Labs, earned Resilience Champion of the Year for implementing workforce well-being strategies.

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