The Data Center Boom Won’t Stop—But Should It?

AI doesn’t run on magic. It runs on data centers the size of small cities, devouring energy and land at a record pace. Tech giants are spending hundreds of billions to fuel AI’s expansion, but with rising power shortages and government pushback, how long before this growth hits a wall?

The race to build AI-ready data centers is accelerating, with companies like Meta, Google, and Microsoft pouring $180B+ annually into new infrastructure. Yet, supply can’t keep up; power shortages, zoning laws, and long construction times are creating bottlenecks.

Despite concerns, demand keeps rising as AI models, cloud computing, and IoT adoption skyrocket. Even if AI becomes more efficient, data centers will remain essential for future applications.

We’re building the digital backbone of the future but at what cost? Will AI innovation outpace infrastructure constraints, or will physical limits force a reckoning?

Read the full article on The Economist.

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