ScaleMatrix, a San Diego-based data center company and provider of colocation services, launched a partnership with Hewlett Packard Enterprises (HPE) on Nov. 13.

The two companies will work together to create a Center of Excellence for hybrid high-performance computing (HPC) at ScaleMatrix’s San Diego headquarters.

High-performance computing was initially used for universities and research facilities. But in the last two to three years, with the rise of machine learning, data analytics and other technologies that use large amounts of computational power, more mid-sized businesses are looking for HPC capabilities, ScaleMatrix CEO Chris Orlando said.

“It’s starting to become table stakes that companies use this intelligence in order to give themselves a business advantage,” he said. “As AI made its way onto the scene in 2017, we saw a significant demand increase. Instead of just seeing customers from San Diego, we began to see customers from across the U.S. and the world.”

Of course, increased computing ability brings increased power and heat requirements. Orlando said businesses were running into challenges finding places where they could host servers with the density and cooling needed for HPC.

Orlando said ScaleMatrix’s cabinet technology helps its clients install servers without worrying about power or heat limitations. That led to the partnership with HPE, with ScaleMatrix combining its data center technologies with HPE’s high-performance computing capabilities.

The companies will be able to host clients’ servers at the Center of Excellence, or modernize clients’ own data centers onsite. ScaleMatrix described the new center as a “test environment and sandbox” for its enterprise and HPC clients that want to try out the platform’s capabilities.

ScaleMatrix reported $12 million in sales in 2016, and 60 employees last year. The company plans to announce three new data center locations in the first quarter of 2019.