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Study reveals growing pains for electric vehicle owners

  • Study reveals a significant gap in quality compared to traditional gasoline-powered vehicles.

The automotive landscape is undergoing a dramatic shift, with electric vehicles (EVs) increasingly vying for a place in the market.

However, a recent J.D. Power study, a highly respected benchmark of vehicle quality in the US, has cast a shadow on the EV’s burgeoning popularity, revealing a significant gap in quality compared to traditional gasoline-powered vehicles.

The study, which surveyed nearly 100,000 new vehicle owners within the first 90 days of ownership, found that EVs, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), exhibited significantly more problems than internal combustion engine (ICE) vehicles.

In fact, EVs recorded an astonishing 266 problems per 100 vehicles (PP100), a staggering 86 points higher than ICE vehicles, which averaged 180 PP100.

This is a notable trend, especially considering the historical narrative that EVs, with their simpler design and fewer moving parts, should theoretically require fewer repairs.

Experiencing more problems

The J.D. Power study, for the first time, incorporated repair data, providing a more comprehensive view of real-world experiences. The results reveal that EVs are not only experiencing more problems, but these problems are severe enough to necessitate dealership visits at a rate three times higher than traditional gas-powered vehicles.

The finding directly contradicts the longstanding industry belief that EVs would be inherently more reliable.

The trend is attributed to the complexities associated with integrating new technology into vehicles. Frank Hanley, senior director of auto benchmarking at J.D. Power, acknowledged the challenges of introducing cutting-edge technologies while maintaining high quality standards.

While EVs as a whole faced significant quality challenges, Tesla, the leading player in the EV space, faced its own set of difficulties.

Dissatisfaction among Tesla owners

While Tesla’s EVs were initially perceived to have better quality than those produced by traditional automakers, the gap has narrowed significantly in recent years.

Notably, the elimination of traditional controls like turn signal stalks and wiper stalks, a move that was supposed to enhance user experience, has actually backfired, resulting in dissatisfaction among Tesla owners and a decline in the company’s quality score.

These quality concerns come at a time when EV adoption rates are showing signs of slowing in the US. Several factors, including a lack of robust charging infrastructure, range anxiety, and high purchase costs, have already hindered EV adoption.

Adding concerns about reliability and potential high repair costs to the equation further complicates the picture, creating a significant barrier for widespread EV adoption.

A clear warning

It is important to note that while the study highlighted the shortcomings of EVs, several traditional brands showcased exemplary performance.

Ram, Stellantis’ truck brand, topped the list, followed closely by Chevrolet, Hyundai, Kia, and Buick. Among premium brands, Porsche emerged as the top performer, outshining established names like Lexus and Genesis.

Conversely, Polestar, Dodge, Tesla, Rivian, and Volvo, along with Audi, ranked among the worst in terms of overall quality. Notably, pure EV brands like Polestar, Rivian, and Tesla heavily influenced the lower overall EV rankings.

The J.D. Power study underscores the crucial need for automakers to prioritise quality in their pursuit of electric vehicles.

Despite the numerous advantages of EVs, overcoming the quality issues is paramount to achieving widespread adoption and ensuring a smooth transition towards a more sustainable future.

This report serves as a clear warning to the automotive industry.

The future of electric vehicles hinges not only on technological innovation, but also on addressing the quality concerns that are currently hindering their progress. Only by addressing these issues and demonstrating unwavering commitment to quality can the electric vehicle revolution truly gain momentum and pave the way for a sustainable and efficient transportation system.

Amazon to license AI technology from Adept

  • Company is planning to overhaul its Alexa voice assistant, introducing a new paid version with generative AI capabilities.
  • Talent wars within the AI industry are intensifying as companies vie to attract the brightest minds in the field.

Amazon’s, the e-commerce giant, latest move to ramp up its development of AI capabilities, including the hiring of top talent from the AI agent startup Adept and the licensing of the company’s technology, underscores its ambitious goals to stay ahead of the curve in this critical field.

In a memo to employees, Rohit Prasad, the senior vice president and head scientist overseeing Amazon’s artificial general intelligence (AGI) unit, announced the hiring of Adept’s co-founder and CEO, David Luan, as well as a few other highly talented team members.

Luan will now lead Amazon’s “AGI Autonomy” division, reporting directly to Prasad. This strategic move not only strengthens Amazon’s AI expertise but also signals its determination to make significant strides in the realm of advanced AI, particularly in the development of AI agents capable of automating complex software workflows without human intervention.

The competitive landscape in the AI industry is fiercely contested, with Amazon facing formidable rivals such as Microsoft and Google, who have been rapidly integrating new AI features into their core products and offering businesses greater access to large language models through their public cloud services.

Bolstering AI capabilities

Amazon’s cloud unit has also launched a range of AI services, but industry analysts have generally viewed these offerings as lagging behind the top competitors.

In an effort to bolster its AI capabilities, Amazon has made substantial investments in other prominent AI players, including pumping billions of dollars into OpenAI competitor Anthropic.

Additionally, the company is planning to overhaul its Alexa voice assistant, introducing a new paid version with generative AI capabilities. The appointment of Prasad, a seasoned Alexa scientist, to lead the development of AGI further underscores Amazon’s commitment to advancing its AI prowess.

The talent wars within the AI industry are intensifying, as companies vie to attract the brightest minds in the field.

Microsoft’s recent hiring of Mustafa Suleyman, a co-founder of Google’s DeepMind, and several other top executives from the startup Inflection AI, has caught the attention of the Federal Trade Commission, which is investigating whether the deal was structured to avoid antitrust review.

Automating software workflows

Adept, the AI agent startup, was founded in 2022 by a group of former OpenAI and Google engineers. The company quickly gained the backing of industry giants like Microsoft and Nvidia, and was valued at over $1 billion in early 2023.

As part of the agreement with Amazon, the e-commerce giant will license Adept’s technology, multimodal models, and datasets, which Prasad believes will “accelerate our roadmap for building digital agents that can automate software workflows.”

The strategic move by Amazon highlights the company’s desire to leverage cutting-edge AI technology to enhance its offerings and stay ahead of the competition.

By integrating Adept’s expertise in training state-of-the-art multimodal foundational models and building real-world digital agents, Amazon aims to “delight consumer and enterprise customers with practical AI solutions,” as Prasad stated.

IBM to drive AI innovation and collaboration in Gujarat

  • Financial institutions will gain access to AI Sandbox, assistance in providing proof of concept, AI Literacy programs, and Digital Assistant Solutions.
  • IBM will also aim to build a Digital assistant-based solution that facilitates the onboarding and integration of these customised large language models for financial institutions.

IBM and the Department of Science and Technology, Government of Gujarat, entered a Memorandum of Understanding (MoU) to establish and promote an AI Cluster leveraging IBM’s watsonx to foster innovation and collaboration among financial institutions in Gujarat International Finance Tec (GIFT) City.

As part of this collaboration, financial institutions will gain access to AI Sandbox, assistance in providing proof of concept, AI Literacy programs, and Digital Assistant Solutions.

Bhupendrabhai Patel, Hon’ble Chief Minister, Government of Gujarat said, “This MoU with IBM will help Gujarat to lead the country in efforts to adopt AI and drive digital transformation.”

“Using AI for business is a strategic priority for enterprises today to gain competitive advantage through better productivity, innovation and customer experience,” Sandip Patel, Managing Director, IBM India & South Asia, said.

“This collaboration is a significant step in our continued association with the Government of Gujarat to accelerate the digital transformation of the state. By establishing this AI cluster, our aim is to make the latest AI solutions easily accessible to the vibrant and growing number of financial institutions in GIFT City,” he added.

As part of this MoU, IBM will provide software technologies and platforms over a cloud environment enabling financial institutions to customise and fine-tune large language AI models in a sandbox environment.

IBM will also aim to build a Digital assistant-based solution that facilitates the onboarding and integration of these customised large language models for financial institutions.

Aligned with IBM’s commitment to skill 30 million people by 2030 and train 2 million learners in AI by the end of 2026, IBM will develop an AI curriculum for schools and universities across Gujarat. The collaboration also includes literacy programmes and certifications for professionals in the state to enhance the skill sets of professionals, preparing the state’s talent for the AI-driven future economy. 

Digital transformation to double India’s data centre capacity by 2025

  • SaaS market is expected to grow from $13b in 2022 to $35b by 2025, with data centres contributing to this growth.
  • Development of a sovereign cloud infrastructure will further bolster data security and ensure regulatory compliance.

India’s data centre capacity is poised for a remarkable transformation, projected to double from 870 megawatts (MW) in fiscal 2022 to approximately 1,700-1,800MW by fiscal 2025, industry experts said.

The surge is driven by India’s burgeoning data landscape, which now surpasses the combined data volume of the United States and China, as well as the country’s thriving startup ecosystem.

According to a report by Cushman and Wakefield, India has the potential to expand its data centre capacity by as much as five times to fuel its digital transformation.

The report further highlights the need for an additional 1.7-3.6GW (gigawatt) of data centre capacity over and above the planned development of 2.32GW (colocation) capacity, potentially taking the total data centre capacity to over 5GW.

Exponential growth in data consumption

Niranjan Hiranandani, the Past President of ASSOCHAM and CMD of Hiranandani Group of Companies, said that the development of physical infrastructure in the region is at an all-time high, and the data centre sector is poised to grow at an unprecedented pace.

Sunil Gupta, the Chair of ASSOCHAM National Council on Datacenter and Co-Founder, MD & CEO of Yotta Data Services, underscores the exponential growth in data consumption, which has increased from just 300MB a few years ago to 25GB per month, with a projected rise to 62GB per user per month by 2028.

The digital pervasiveness in India is transforming the country into a digital-first economy, surpassing many of the world’s largest economies.

“The development of a sovereign cloud infrastructure will further bolster data security and ensure regulatory compliance, ensuring that data generated within India remains within the country’s borders and is protected by local laws and regulations.”

Mumbai is the hotspot

The data centre capacity in India has grown from around 200MW in 2013-14 to 1,200MW, and it is expected to reach 2,000MW by 2027.

However, according to Cushman and Wakefield data, India’s colocation data centre capacity stood at 977MW across the top seven cities, with around 258MW being added in 2023, representing a 105 per cent  year-on-year growth.

The report also highlights that India’s current under-construction colocation capacity addition stands at 1.03GW for 2024-2028, with an additional 1.29GW being planned, taking the total projected capacity to 2.32GW by 2028.

More than 90 per cent of this supply is concentrated in key markets, including Mumbai, Chennai, Delhi NCR, and Hyderabad, with Mumbai emerging as the clear leader in the data centre market, while Hyderabad and Delhi NCR are fast becoming new data centre hubs.

Low construction costs

Vivek Dahiya, the Managing Director and Head of the Data Centre Advisory Team, Asia Pacific, at Cushman & Wakefield, believes that India needs close to 5GW-6.9GW of total installed capacity to achieve healthier ratios, necessitating the commissioning of 1.7-3.6GW of additional projects beyond those under construction or planned.

Shri Surajit Chatterjee, the Co-Chair of ASSOCHAM National Council on Datacentrer and Managing Director of CapitaLand Data Centre, anticipates that the data centre capacity in India is likely to cross the 1,600 mark by 2026.

The growth in India’s data centre sector is supported by the country’s low construction costs and its large user market, encompassing both hyperscalers and enterprise segments. The startup ecosystem in India is also flourishing, relying on data centres for scalable and reliable computing resources.

“Cloud services hosted in data centres allow start-ups to launch and expand their operations swiftly, without the need for substantial upfront investment in IT infrastructure. By 2025, the Indian SaaS market is expected to grow from $13 billion in 2022 to $35 billion, with data centres contributing to this growth,” experts said.

CtrlS Datacenters to build $264m data centre campus in Kolkata

  • Campus will feature modern cooling technologies, high-density racks, and seamless access to multiple internet service providers (ISPs) and cloud service providers.
  • Company pledges to invest $2b over the next six years and eyes Asia and Middle East.

Hyderabad-based CtrlS Datacenters plans to develop a state-of-the-art data centre campus in Kolkata with an investment of Rs2,200 crore ($264 million).

Kolkata, the capital of West Bengal, has long been recognized as a hub of economic and cultural significance in India. With its third-largest GDP among Indian cities, the city has witnessed a remarkable surge in digital transformation, fueling an ever-increasing demand for robust and reliable data centreservices.

The proposed data centre campus, set to be built in the New Town area of Kolkata, will be implemented over four phases and offer more than 60MW of IT capacity.

Comprehensive approach

The first phase of the development, a 16MW facility spanning 90,000 square feet, is scheduled to go live in the third quarter of 2024, setting the stage for the company’s ambitious long-term plans.

At the heart of this transformative endeavour lies CtrlS Datacenters’ dedication to incorporating cutting-edge technologies and innovative solutions.

The campus will feature modern cooling technologies, high-density racks, and seamless access to multiple internet service providers (ISPs) and cloud service providers. These facilities will not only cater to the ever-growing demand for data storage and processing but also serve as a hub for advanced interconnectivity solutions.

“Along with our core offerings, we will also launch our full suite of managed services and advanced interconnectivity solutions tailored for this market,” Suresh Kumar Rathod, the president of CtrlS Datacenters’ colocation business, said.

Moreover, he said the comprehensive approach underscores the company’s commitment to providing a holistic suite of services that cater to the diverse needs of its clients in the Kolkata region.

“The decision to establish a data centre campus in Kolkata is a strategic move that leverages the city’s unique positioning as the third-largest internet subscriber base in India, after Maharashtra and Uttar Pradesh. The vast and rapidly expanding user base, coupled with the region’s thriving digital transformation, creates a fertile ground for CtrlS Datacenters to capitalise on the growing demand for reliable and scalable data infrastructure.”

A critical hub

CtrlS Datacenters has 15 facilities with 275MW capacity across seven major cities including Mumbai, Hyderabad, Chennai, Bangalore, Noida, Lucknow, and Patna.

The announcement comes as part of CtrlS Datacenters’ broader expansion plans across Asia and the Middle East, with the company pledging to invest $2 billion over the next six years. The Kolkata project is a testament to the company’s ambitious vision and its commitment to supporting the digital aspirations of the region.

Alongside CtrlS Datacenters, other industry giants, such as STT and Tata Communications, have also established a presence in the Kolkata area, underscoring the city’s emerging status as a critical hub for data infrastructure development.

Alibaba Cloud to shut down data centres in Sydney and Mumbai

  • Chinese group faces headwinds from geopolitical tensions and a lack of advanced chips essential for artificial intelligence projects in data centres.
  • Aims to capture a larger share of the growing demand for digital infrastructure in the Asia-Pacific region and beyond.

Alibaba Group Holding’s cloud computing unit – Alibaba Cloud – plans to shut down its data centres in Sydney, Australia, and Mumbai, India.

The decision, the company states, is part of a broader effort to reallocate its resources and expand investment in other promising markets, particularly Southeast Asia and Mexico.

The move to suspend data centre services in India and Australia by mid-July and late September, respectively, reflects Alibaba Cloud’s strategic prioritisation of certain geographies.

South China Morning Post states that the company has cited a “careful assessment” of its infrastructure needs and the desire to “expand investment in Southeast Asia and Mexico” as the driving factors behind this decision.

Seeks new opportunities

The strategic shift comes at a time when Alibaba Cloud, the leading cloud infrastructure services provider in mainland China, faces headwinds from geopolitical tensions and a lack of advanced chips essential for artificial intelligence (AI) projects in data centres.

The decision to focus on other markets could open up new opportunities for the company, as it aims to capture a larger share of the growing demand for digital infrastructure in the Asia-Pacific region and beyond.

The global cloud infrastructure services market has been dominated by major US players, with Amazon Web Services, Microsoft Azure, and Google Cloud accounting for a significant portion of the market share.

Penetrating LatAm market

Alibaba Cloud, while a formidable player in its home market, has struggled to gain a more substantial foothold in the international arena. By prioritising its presence in Southeast Asia and Mexico, the company is positioning itself to capitalise on the growing demand for cloud services in these regions.

The AI boom has fueled the demand for digital infrastructure, and Alibaba Cloud’s decision to expand its cloud facilities in Malaysia, the Philippines, Thailand, and South Korea by 2027 reflects its long-term commitment to these markets.

Additionally, the planned data centre investment in Mexico suggests Alibaba Cloud’s ambition to penetrate the Latin American market, which has been a focus of several global tech giants in recent years.

The strategic infrastructure overhaul by Alibaba Cloud is a clear indication of the company’s efforts to optimize its global footprint and allocate resources more effectively.

By redirecting its focus to markets with greater growth potential, Alibaba Cloud aims to strengthen its competitive position and capture a larger share of the burgeoning cloud services market.

The decision to shut down its data centres in Australia and India may be a difficult one, but it underscores the company’s commitment to aligning its infrastructure investments with its long-term growth strategy.