"The 'build it and they will come' strategy is a trap. If you are a hyperscaler, you will own your own data centers. We foresee a significant financing crisis in 2027-2028 for speculative landlords."
"He adds that data center buildouts will put too much "stress on the system.""
"The bottom line: Data centers are becoming political flashpoints, primarily because of their impact on electricity prices. Now, the investment community is also asking questions."
Disruptive led a large investment in AI chipmaker Groq, which then signed a $20 billion licensing deal with Nvidia. Disruptive also backed unicorns Reflection AI, Shield AI, and Gecko Robotics. The 'build it and they will come' strategy is a trap. Hyperscalers will own their own data centers. A significant financing crisis is forecast for 2027–2028 for speculative landlords. Data center buildouts will put too much stress on the system. Data centers are becoming political flashpoints because of their impact on electricity prices. The investment community is raising questions about sector sustainability and risks.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]