# Rearchitecting Datacenter Lifecycle for AI: A TCO-Driven Framework

arXiv: https://arxiv.org/abs/2509.26534 · HTML: https://mlsanity.com/paper/2509.26534/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- Builds on 34 of its 103 references that are in the map.
- First posted on arXiv 30 Sep 2025.

## Builds on (most cited first, 30 of 34)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Efficient Memory Management for Large Language Model Serving with PagedAttention](https://mlsanity.com/paper/2309.06180/) (2023)
- [FlashAttention: Fast and Memory-Efficient Exact Attention with IO-Awareness](https://mlsanity.com/paper/2205.14135/) (2022)
- [Outrageously Large Neural Networks: The Sparsely-Gated Mixture-of-Experts Layer](https://mlsanity.com/paper/1701.06538/) (2017)
- [Megatron-LM: Training Multi-Billion Parameter Language Models Using Model Parallelism](https://mlsanity.com/paper/1909.08053/) (2019)
- [Google's Neural Machine Translation System: Bridging the Gap between Human and Machine Translation](https://mlsanity.com/paper/1609.08144/) (2016)
- [Distilling Step-by-Step! Outperforming Larger Language Models with Less Training Data and Smaller Model Sizes](https://mlsanity.com/paper/2305.02301/) (2023)
- [DistServe: Disaggregating Prefill and Decoding for Goodput-optimized Large Language Model Serving](https://mlsanity.com/paper/2401.09670/) (2024)
- [Splitwise: Efficient generative LLM inference using phase splitting](https://mlsanity.com/paper/2311.18677/) (2023)
- [Hybrid LLM: Cost-Efficient and Quality-Aware Query Routing](https://mlsanity.com/paper/2404.14618/) (2024)
- [Atom: Low-bit Quantization for Efficient and Accurate LLM Serving](https://mlsanity.com/paper/2310.19102/) (2023)
- [QServe: W4A8KV4 Quantization and System Co-design for Efficient LLM Serving](https://mlsanity.com/paper/2405.04532/) (2024)
- [LLM in a flash: Efficient Large Language Model Inference with Limited Memory](https://mlsanity.com/paper/2312.11514/) (2023)
- [From Words to Watts: Benchmarking the Energy Costs of Large Language Model Inference](https://mlsanity.com/paper/2310.03003/) (2023)
- [A Study of Generative Large Language Model for Medical Research and Healthcare](https://mlsanity.com/paper/2305.13523/) (2023)
- [Cost-Efficient Large Language Model Serving for Multi-turn Conversations with CachedAttention](https://mlsanity.com/paper/2403.19708/) (2024)
- [LLM Inference Unveiled: Survey and Roofline Model Insights](https://mlsanity.com/paper/2402.16363/) (2024)
- [A Comprehensive Survey of Scientific Large Language Models and Their Applications in Scientific Discovery](https://mlsanity.com/paper/2406.10833/) (2024)
- [SpotServe: Serving Generative Large Language Models on Preemptible Instances](https://mlsanity.com/paper/2311.15566/) (2023)
- [Fast On-device LLM Inference with NPUs](https://mlsanity.com/paper/2407.05858/) (2024)
- [Towards Greener LLMs: Bringing Energy-Efficiency to the Forefront of LLM Inference](https://mlsanity.com/paper/2403.20306/) (2024)
- [Helix: Serving Large Language Models over Heterogeneous GPUs and Network via Max-Flow](https://mlsanity.com/paper/2406.01566/) (2024)
- [Step-3 is Large yet Affordable: Model-system Co-design for Cost-effective Decoding](https://mlsanity.com/paper/2507.19427/) (2025)
- [ALISA: Accelerating Large Language Model Inference via Sparsity-Aware KV Caching](https://mlsanity.com/paper/2403.17312/) (2024)
- [MegaScale-Infer: Serving Mixture-of-Experts at Scale with Disaggregated Expert Parallelism](https://mlsanity.com/paper/2504.02263/) (2025)
- [HexGen: Generative Inference of Large Language Model over Heterogeneous Environment](https://mlsanity.com/paper/2311.11514/) (2023)
- [TAPAS: Thermal- and Power-Aware Scheduling for LLM Inference in Cloud Platforms](https://mlsanity.com/paper/2501.02600/) (2025)
- [TokenWeave: Efficient Compute-Communication Overlap for Distributed LLM Inference](https://mlsanity.com/paper/2505.11329/) (2025)

## Built on by (most cited first, 2 of 2)

- [Tessera: Unlocking Heterogeneous GPUs through Kernel-Granularity Disaggregation](https://mlsanity.com/paper/2604.10180/) (2026)
- [Designing Datacenter Power Delivery Hierarchies for the AI Era](https://mlsanity.com/paper/2605.16255/) (2026)

## Abstract (arXiv)

The rapid rise of large language models (LLMs) has been driving an enormous demand for AI inference infrastructure, mainly powered by high-end GPUs. While these accelerators offer immense computational power, they incur high capital and operational costs due to frequent upgrades, dense power consumption, and cooling demands, making total cost of ownership (TCO) for AI datacenters a critical concern for cloud providers. Unfortunately, traditional datacenter lifecycle management (designed for general-purpose workloads) struggles to keep pace with AI's fast-evolving models, rising resource needs, and diverse hardware profiles. In this paper, we rethink the AI datacenter lifecycle scheme across three stages: building, hardware refresh, and operation. We show how design choices in power, cooling, and networking provisioning impact long-term TCO. We also explore refresh strategies aligned with hardware trends. Finally, we use operation software optimizations to reduce cost. While these optimizations at each stage yield benefits, unlocking the full potential requires rethinking the entire lifecycle. Thus, we present a holistic lifecycle management framework that coordinates and co-optimizes decisions across all three stages, accounting for workload dynamics, hardware evolution, and system aging. Our system reduces the TCO by up to 40% over traditional approaches. Using our framework we provide guidelines on how to manage AI datacenter lifecycle for the future.