The AI bubble may be constrained by energy supply
Big Tech companies like OpenAI, xAI, Meta, Google, Microsoft, and Amazon are racing each other to spend tens of billions of dollars on massive AI data centers.
But no matter how many Nvidia GPUs you acquire through a complex partnership, there is one factor that may limit the industry’s AI dreams: energy.
A new analysis by the Financial Times found that the tech industry is currently moving forward with plans to build out a staggering 44 gigawatts’ worth of computing infrastructure. The problem is that there’s only about 25 gigawatts of power coming online in the next three years, creating a 19-gigawatt gap, according to the report.
Even with the full support of the Trump administration, it could be hard for all the tech companies to get the power they want, something that Nvidia CEO Jensen Huang as well as Microsoft CEO Satya Nadella have both noted is the main obstacle to rapid AI expansion.
A new analysis by the Financial Times found that the tech industry is currently moving forward with plans to build out a staggering 44 gigawatts’ worth of computing infrastructure. The problem is that there’s only about 25 gigawatts of power coming online in the next three years, creating a 19-gigawatt gap, according to the report.
Even with the full support of the Trump administration, it could be hard for all the tech companies to get the power they want, something that Nvidia CEO Jensen Huang as well as Microsoft CEO Satya Nadella have both noted is the main obstacle to rapid AI expansion.
