Signs of overcapacity

Signs of overcapacity

https://info.siteselectiongroup.com/blog/is-a-bubble-forming-in-the-data-center-industry-due-to-ai-hype

?

Despite the optimism, there are emerging signs that the market might be overestimating future demand:

• Rapid Expansion:?The new data center construction rate is outpacing even the most optimistic forecasts for AI growth. This aggressive expansion could lead to oversupply if AI technology adoption doesn’t meet expectations.
• Advancements in AI Efficiency:?AI algorithms are becoming more efficient. Innovations like quantization and pruning reduce the computational power needed to run AI applications, which could lessen future data center requirements.
• Economic Pressures:?As global economies face uncertainty, investments in IT and AI may slow down, impacting the projected need for the hundreds of MWs forecasted to be needed and gobbled up over the next several years.
• Newly Minted AI Companies:?Many new AI companies are entering the market with significant equity backing to implement their business plans. Like the internet bust in the early 2000s, it remains to be seen if some or all of these AI and high-performance computing (HPC) groups will be successful.

?

Microsoft abandons data center projects as OpenAI considers its own, hinting at a market shift

https://www.networkworld.com/article/3854819/microsoft-abandons-data-center-projects-as-openai-considers-its-own-hinting-at-a-market-shift.html

?

?

?

Microsoft steps back from data center developments globally?

?

https://www.datacenterdynamics.com/en/news/microsoft-steps-back-from-data-center-developments-globally-report/

?

?