123NET Expands Michigan Data Centre for AI and GPU Growth

123NET, the Michigan-based data centre and network services provider, has completed a large-scale expansion of its Southfield DC1 facility. 

The project introduces advanced colocation space and infrastructure designed to meet the growing demands of AI inference and other data-heavy applications.

The expansion delivers a 4MW power increase, making DC1 the only site in Michigan to combine high-density GPU infrastructure with both liquid and air-cooled options alongside free on-site peering. This combination allows organisations to scale GPU deployments for real-time AI and machine learning while reducing network costs by up to 70%.

Power and connectivity in one location

The Southfield data centre’s latest optimisation enables enterprises to run large GPU clusters in a setting tailored for latency-sensitive workloads. At the core of this is the on-premises Detroit Internet Exchange (DET-iX), a switching fabric that offers direct peering and fewer network hops, which accelerates data transfers and reduces reliance on traditional carriers.

“Having DET-iX inside the data centre gives our clients instant access to a powerful peering ecosystem and a more direct path to end users,” says Dan Irvin, Founder and CEO of 123NET. 

“It's the only place in Michigan where massive GPU power meets free peering, significantly cutting network costs compared to traditional colocation.”

The integration of DET-iX with the high-density data hall design positions DC1 as a key hub for enterprises seeking both compute performance and network efficiency in one environment.

A fee-free internet exchange with scale

The DET-iX, hosted within DC1, is among the largest fee-free internet exchanges globally. It serves 85 members including Apple, Microsoft and Google. The exchange has recorded traffic peaks above 2.5 terabits per second (Tbps) with port capacities reaching up to 400 gigabits per second (Gbps).

By hosting DET-iX within the Southfield site, 123NET combines colocation with cost-efficient connectivity. This approach is designed to meet the needs of organisations deploying AI models and GPU infrastructure that depend on both compute power and bandwidth availability.

Building for AI-driven demand

“We're seeing explosive demand for GPU clusters that require both substantial power and ultra-low latency,” adds Dan. “This expansion, paired with our connectivity, creates an ideal environment for real-time AI workloads. We've built the density and network performance that serious GPU deployments require.”

The Southfield expansion reflects growing industry requirements for facilities that can host large-scale GPU deployments, particularly as enterprises accelerate adoption of AI-powered applications. With additional megawatt capacity and direct peering integrated into the site’s design, DC1 offers infrastructure aimed at supporting real-time analytics, machine learning training and inference workloads at scale.

By combining dense power, liquid cooling options and one of the world’s largest fee-free internet exchanges, 123NET’s Southfield facility strengthens Michigan’s role as a regional hub for advanced data centre operations.