Richard Korman
Construction cannot be blamed for their eyes on the revolution of artificial intelligence and the data centers needed to support it. Ai seems a trend aimed at remodeling business, war and everyday life. So I understand why so many companies in the industry are eager to put in the nose cone of the data center building available and take the impressive walk to the sky. What could go wrong? Maybe nothing, but now is a good time to pay attention to the AI camp and the pessimists of the data center, and there is a large amount of business history that can be used by cautious operators and observers, including me, for examples.
Technical revolutions do not usually leave the X axis of the business growth graph as a mechanical scale aimed at the upper floor of the department store. There are steps and setbacks. Take the nascent North Rubber Industry -American in the 1830’s. For a while, rubber seemed like the miraculous material of the industrial revolution. Five new rubber companies raised capital and opened the store in Boston Sol in 1835.
What if the air leaves the AI and the Data Center boom? Payments to industry companies can stop or stop, with which they are reduced to the more at -risk pay chain.
But great detail was left out of course: companies could not deliver a lasting product that would last through a hot summer. More work was needed before a patented process would be reliably involved, with a great reward in the United States with the demand for the Civil War of Rain -Proof Clothing for soldiers.
Another example took place from 1996 to 2005. Advances in fiber optics technology that greatly increased the capacity of “ created a business boom that became a bubble that exploded with losses in the range of millions of dollars, ” said Jeff Hecht, a science and technology writer, a degree in Caltech engineering, on the Internet History.org website. At that time, the common wisdom was that the demand for internet service would be doubled each month. “Dematized by the new technology,” said Hecht, “investors launched money to anything optical and innovative.” Foxy evaluations were the norm.
Historical comparisons have their limits. But it is important to pay attention not only to what is possible technologically with the AI, but also to the agreement of demand and supply.
The Wall Street Journal noted on September 25 that technology companies are pouring hundreds of millions into data centers, most were taken on loan, while AI revenue remains “tiny”. Amazon, Microsoft, Alphabet and Meta plans to spend $ 40 billion on capital investments. The Coreweave Data Center lease has $ 42 billion, $ 15 billion in debt, and is “in the hook” for $ 56 million in lease payments for the next decade. Wall Street companies invest in car park purchases at the site’s data centers, reports New York Times. A Wall Street Journal columnist suggested a stress test for investments, citing the possibility of a “data center construction”.
Industry design and construction companies already make money in data centers and others plan to do more. What if the air leaves the AI and the Data Center boom? Payments can stop or stop, and those of the pay chain face the danger further. A healthy room of prudence is wise.
