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$1.5 Trillion In Two Years: AI Spending Forecasts Just Keep Rising
I told you so. Not that you needed to be any sort of seer to make this particular prediction.
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I think the limitation in rate of growth in electrical power generation, and the limitation in rate of growth of memory chip availability (until the new DRAM fabs start actual production) will be the limiting factor in datacenter growth. The demand for compute will exceed this capacity, particularly from physical AI: robotics and autonomous driving.
Remember “the War on Christmas” which so distressed the GOP?
Well, over the last few days it almost looks like the Whitehouse is launching a new war = the War on AI!
First we had had the newly exhumed Peter Navarro demanding that datacenters provide their own electricity. He even mentioned water usage!
And then today it was reported that Pete Hegseth is going after Anthropic. This may be a negotiating ploy, but it also signals that AI is no longer an untouchable sacred cow in the GOP.
They are following the lead of Ron DeSantis and Josh Hawley in realizing that there is not massive voter support for the continued build out of datacenters if they raise voters electricity rates to help an industry based on the promise of allowing companies to lay off people. (Otherwise why would any large corporation even use it?)
https://www.msn.com/en-us/money/markets/trump-trade-adviser-navarro-says-administration-may-force-data-center-builders-like-meta-to-internalize-costs/ar-AA1WpQUD?ocid=socialshare
https://www.marketwatch.com/story/hegseth-reportedly-considering-severe-penalty-on-anthropic-as-negotiations-stall-16dae92f?st=b7mZ4q&reflink=desktopwebshare_permalink