Why So Much Is Riding on the Data Center Boom
In pursuit of revolutionary advances in AI, tech companies are plowing billions of dollars into massive new facilities. The projects are straining power grids, environmental resources and, potentially, financial markets
Silicon Valley entrepreneurs prefer to talk of possibilities rather than obstacles, and of vast revenue opportunities to be seized through sheer force of will. That defiant optimism now faces the ultimate test as big tech firms spend hundreds of billions of dollars on artificial intelligence in the belief it will take human endeavor to the next level, making us all more intelligent, creative and productive.
The visible manifestations of this revolution-in-progress are the vast, windowless buildings that are springing up across the world to handle AI workloads. Where a “big” data center was once roughly the size of a football field, some of the new AI facilities will cover an area comparable to Central Park in Manhattan. The investments required are so large that they’re giving a significant boost to the US national economy.