Data centers become America’s latest building craze as AI takes off
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Big tech is on a building spree. Across America, companies are dumping billions into data centers—massive, climate-controlled, power-hungry structures that house servers and keep the engines of artificial intelligence running 24/7. The numbers are off the charts. Private spending on these data fortresses has shot up to nearly $30 billion annually, more than doubling from last year, according to the Census Bureau. AI’s rise (led by tools like OpenAI’s ChatGPT) triggered this surge as companies scrambled to support the data demands of a tech race that’s only speeding up. AI applications are expensive to run. They require tons of processing power and data storage, which means more infrastructure and, of course, way more cash. And right now, data centers are eating up more budget dollars than anything else in the corporate building category—more than hotels, retail spaces, and even leisure facilities. These facilities are now America’s biggest construction obsession. Money manager KKR & Co. expects global data center spending to climb to a staggering $250 billion annually, with the U.S. at the forefront. Companies everywhere are digging deep to build the storage and processing power needed to keep up with the AI gold rush. The electric appetite of AI: Data centers demand more power If data centers were people, they’d be the ones with a never-ending hunger for electricity. And it’s a problem. With each new facility, the energy demands of the tech sector skyrocket. Massive tech firms like Google, Amazon, and Microsoft already draw serious power to keep these operations running. But data centers don’t just need a lot of electricity—they want exclusive access. They want priority, sometimes even their own power sources. It’s making utility companies and regulators nervous, especially with the risk that this consumption could push up energy prices for regular Americans and small businesses just…
Filed under: News - @ November 9, 2024 8:20 pm