$200 billion to build a data center? Soaring AI demands mean costs could skyrocket within a few years
Briefly

A recent study by Epoch AI indicates that the rising demand for AI infrastructure could cause data center building costs to hit $200 billion, with most ownership in private hands. The research emphasizes that AI supercomputers, or GPU clusters, show rapid performance improvements, doubling every nine months due to chip advancements. Despite significant gains in computational efficiency, hardware and power costs are also soaring. For example, xAI’s $7 billion Colossus supercomputer requires 300MW of power. By 2030, the leading AI supercomputer might need 2 million chips and 9 GW of power, necessitating decentralized training to keep pace with power limits.
A recent study by Epoch AI reveals that surging demand for AI-related infrastructure could lead to data center costs reaching $200 billion, primarily owned by private entities.
The study highlights that AI supercomputers, which are doubling in performance every nine months, result from a 1.6x annual increase in chip quantity and performance per chip.
Epoch's research notes that while computational performance increases significantly, power requirements and hardware costs are also rapidly doubling, including a notable example of xAI's $7 billion Colossus.
Future projections suggest that by June 2030, the leading AI supercomputer might require 2 million chips and a staggering $200 billion investment, with potential power constraints curbing development.
Read at IT Pro
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