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Apple is charting a roadmap that could redefine the balance of power in the cloud infrastructure market. Under the code name Project ACDC (Apple Chips in Data Centers), the Cupertino company has been exploring the development of its own data center platform based on Apple Silicon over the past few years, aiming to reduce its dependence on giants like Amazon Web Services (AWS) and Google Cloud. The stakes are high: over $7 billion annually in cloud spending is at play.
Architecture: from Client to Data Center
Apple has achieved unprecedented energy efficiency and performance per watt with its M1, M2, and M3 chips, thanks to an ARM-based architecture and its vertical integration of hardware and software. These same principles are beginning to be applied to the server environment, where the company aims to extend that efficiency at cloud scale.
The cornerstone of the plan is the migration of workloads from key services—such as iCloud, Apple Music, Photos, Siri, and Apple Intelligence—from public clouds to a private infrastructure based on Apple Silicon. This move not only aims for economic savings but also to reinforce control over privacy, latency, and performance.
Private Cloud Compute: the First Real Implementation
Although Project ACDC has not been officially announced, its first tangible manifestation is already in production: Private Cloud Compute. This architecture, presented in 2024, allows for private processing of complex AI requests, shifting model inference off-device when necessary, but without losing control over the hardware.
According to sources close to the project, these cloud nodes are based on current Mac chips, adapted to a highly efficient data center infrastructure. Modular data centers have been designed to scale this capacity alongside the deployment of new Apple Intelligence features.
Apple Silicon in Servers: Efficiency and Custom Design
The project also includes the development of new SoCs designed exclusively for servers, in collaboration with TSMC, using their second-generation 3-nanometer node (N3E) and advanced packaging SoIC (System on Integrated Chips). These chips would be optimized for AI inference loads, encryption, and real-time services, providing a more efficient and secure alternative to renting third-party GPUs.
The next generation of chips, M5, is expected to be a key component of this strategy. Its architecture could include dedicated AI accelerators, hardware security, encryption engines, and integrated network controllers to optimize energy efficiency and rack density.
A Cloud for Developers… and for Apple
In addition to hosting its own services, Apple has considered offering this infrastructure as a cloud service for iOS and macOS developers, replicating the AWS model but with a competitive advantage based on integration and performance. The proposal would allow developers to run intensive AI workloads—like voice processing, computer vision, or data analysis—with lower costs and without leaving the Apple ecosystem.
Instead of building a traditional enterprise sales team, Apple could leverage its existing developer relations team and the Apple Developer Program to launch this new business line. This would allow for revenue diversification in a context of regulatory pressure on the App Store.
Obstacles and Strategic Pause
The project’s main driver, Michael Abbott, Vice President of Cloud Services and architect of iCloud, left Apple in 2023. Since then, the project’s pace has slowed, although reports indicate that testing continued in 2024. The company has not officially confirmed the current status of ACDC, but all signs suggest that the initiative is in a phase of consolidation and adjustment, rather than being canceled.
Some of this caution is due to geopolitical and resilience-related reasons. Apple manages separate infrastructure in regions like China, where regulatory requirements prevent centralized control. Additionally, maintaining part of the load on AWS and Google Cloud offers redundancy and protection against global incidents.
Conclusion: Modular Architecture, Gradual Strategy
Apple does not need to build a monolithic alternative to AWS overnight. Its approach appears to be modular and gradual, starting with lightweight workloads (Notes, Reminders, Messages) and advancing to heavier services (Photos, Files, iCloud backups).
Project ACDC represents the convergence of Apple Silicon efficiency, cloud privacy, and strategic control. In a world where AI inference will be as ubiquitous as email, and where cloud costs are a critical factor in competitiveness, Apple is positioning itself to dominate not only the device but also the data center.
It’s a long-term race. But if Apple executes its strategy with the precision it is known for, the real assault on the cloud has already begun. It’s just doing so quietly.
via: appleismo, wccftech and iclarified