the reason it sells it that some non small part of the investor marked expects there is a "explosion" in compute needs, cause by AI adoption
which will lead to an explosion of electrical need
except there is limited world wide production capacity for gas power plants and other power plants, and some (e.g. nuclear) are very slow to build
and Trump put a lot of extra artificial hurdles for expanding anything "renewable"
so basically if that happen we most likely will have
- exploding electrical bills, and if no intervention is done for private homes, too.
- air pollution (and other environmental pollution) which doesn't just give people asthma implicitly will kill them (like them ding years earlier, but also potentially through damage from asthma attacks etc.)[1]
- price explosion of any electric components which share production lines with GPU servers (which isn't just GPUs, but also RAM, CPUs, etc.), the predicted price increase of RAM by ~30% is partially due to people anticipating this and already buying capacities :/
Naturally there needs to be a sinner to put the blame one so expect claims that electric price increases are fully at fault of Wind Farms and similar :/
Oh also if the AI bubble goes pop it sadly will not just be all fine, because we now have a double bubble of the core AI bubble and the "speculative new data center investment" bubble. The first will majorly hit the top of SAP100 and with it a lot of founds and similar which try to be "stable"/"reliable" etc. The other is more fulled by private equity and it's (for me) very unclear what is linked to it. One way or another things look pretty bad.
[1]: If anyone is wondering if there will be interventions from the state weather it's the OP politico article or long term promulgated and reported issues with fracking causing mutated fishes and major increases in cancer down stream, or the long history with toxic wast dumping in the US the answer is, most likely, no. And that sadly isn't even Trump specific.
the reason it sells it that some non small part of the investor marked expects there is a "explosion" in compute needs, cause by AI adoption
which will lead to an explosion of electrical need
except there is limited world wide production capacity for gas power plants and other power plants, and some (e.g. nuclear) are very slow to build
and Trump put a lot of extra artificial hurdles for expanding anything "renewable"
so basically if that happen we most likely will have
- exploding electrical bills, and if no intervention is done for private homes, too.
- air pollution (and other environmental pollution) which doesn't just give people asthma implicitly will kill them (like them ding years earlier, but also potentially through damage from asthma attacks etc.)[1]
- price explosion of any electric components which share production lines with GPU servers (which isn't just GPUs, but also RAM, CPUs, etc.), the predicted price increase of RAM by ~30% is partially due to people anticipating this and already buying capacities :/
Naturally there needs to be a sinner to put the blame one so expect claims that electric price increases are fully at fault of Wind Farms and similar :/
Oh also if the AI bubble goes pop it sadly will not just be all fine, because we now have a double bubble of the core AI bubble and the "speculative new data center investment" bubble. The first will majorly hit the top of SAP100 and with it a lot of founds and similar which try to be "stable"/"reliable" etc. The other is more fulled by private equity and it's (for me) very unclear what is linked to it. One way or another things look pretty bad.
[1]: If anyone is wondering if there will be interventions from the state weather it's the OP politico article or long term promulgated and reported issues with fracking causing mutated fishes and major increases in cancer down stream, or the long history with toxic wast dumping in the US the answer is, most likely, no. And that sadly isn't even Trump specific.