"So many questions remain: Will tech companies uphold commitments some have made to pay for grid infrastructure buildout? Will novel strategies to generate power on-site at data centers alleviate spiking electricity bills? Even if they do, would such an approach damage air quality? And how will communities safeguard precious and often finite drinking water as thirsty data centers are built nearby?"
"From my conversations with bankers and others in the financing game, Wall Street has two, maybe three, big questions. One, how worried should we be about the circular deals in which the likes of Nvidia invest in the AI labs that then buy Nvidia chips? These deals may be boosting the market in a way that isn't sustainable. Robert Leslie, what do you plan to look into with satellite imagery?"
Rapid growth of data centers, fueled by AI demand, is increasing consumption of electricity and water and prompting scrutiny of environmental and community impacts. Key uncertainties include whether tech companies will fund grid infrastructure buildout and whether on-site power generation can curb escalating electricity costs without worsening air quality. Local drinking-water supplies face pressure from high water usage at facilities. Wall Street concerns focus on circular deals where chipmakers invest in AI labs that then buy their chips, Big Tech companies underwriting massive buildouts with repayment risk, and potential supply-chain and financing bottlenecks. Satellite imagery and mapping efforts are being used to monitor developments and identify emerging risks.
Read at Business Insider
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