Ai Data Center Boom is not a bust, but “temporary suspension” is heading

The sprawling data centers that provoke the forces have become an essential element in the suburbs in some places such as shopping centers and football fields. However, when Microsoft pulled the plug At Olyo’s planned data centers, she added to questions about whether the emerging data center boom has already faded. Wales Vargo report on Monday Some planned data centers have been reviewed by Amazon web services in addition to market anxiety.

But a bust statue ended before it started. And if there is anything, then “stop” in some data center projects come in a tunnels that are still strong.

“We still see the accelerated scaling of the spread of artificial intelligence through the data center market, with strong signs of demand that enhance both near and long growth,” said Giordano Albertzi, CEO of the Oyeio Data Center supplier. Verb On the profit call last week. The participant ended the week by 22 %.

Amazon and nvidia alike It was reaffirmed last week The data center market is still strong.

“There was no really significant change,” Kevin Miller, Vice President of International Data Centers in Amazon, said at a conference organized by an important American energy institute. “We still see a very strong demand, and we are looking for the next two years as well as in the long run and we see the numbers only rise.”

This does not mean that strategic thinking about how, where and when does not spend exactly does not change with the development of the artificial intelligence market and must be digested. Within six weeks of this year, Chinese Dibsic erupted to the scene of the accident, the 500 billion dollar Stargit International initiative, and concerns about the tariffs and commercial wars markets were announced.

“All of that has been created a scenario when Data center solutions. “I think it is a temporary interruption,” Lynch added, noting that the project pipeline and its suppression are important and CBRE continues to implement deals. “I am still optimistic about the future demand, especially when you think about the great artificial intelligence training models,” Lynch said.

Microsoft has pledged a billion dollars in investment in Ohayu -based data centers in the same region where INTEL planned with chips, but the schedule slowed.

A Microsoft spokesman said in a statement to CNBC.

The UBS report concluded from last week that among all the possible explanations for the abolition of the data center, it was more likely that Microsoft had exceeded the rush of artificial intelligence, and was now falling into projects that make the most meaningful. She noted that CAPEX rented from Microsoft increased 6.7X within two years, with rental obligations of $ 175 billion. “Microsoft bought a large amount of available data center capacity that could be in 2022-2024 and now it has a vision to get rid of some of these projects in the early stage,” UBS wrote. His report added, “We find the least support for the interpretation of” demand. “

Anat ashkenazi, alphabet Financial Director, describing the cloud demand environment as “narrow” yet Her latest profits Thursday. “We can see a variation in the growth rates of cloud revenue depending on the deployment of capabilities every quarter,” she said. “We expect to publish the relatively higher capacity at the end of 2025.”

“We do not see a decline in demand but rather a strategic allocation,” said John Caraville, a participant in BGO, Global Real Estate Director of Real Estate, which includes $ 83 billion in his administration, including an important portfolio at the data center. He says that the most important players do not retreat, as Microsoft, Google, Meta and Amazon are planning to spend more than $ 300 billion in Capex this year associated with intelligence infrastructure. He says this does not include other major players, such as Openai and Oracle, both of them Participate in the Stargate project.

“Instead of a bust, this reinstalling the surface in an environment in which the power is in particular, along with fibers, water, and the earth – is rare and strategic,” said Caraville. The institution’s long -term dependence will pay the demand for the data center and the data office over the next decade. “We are not even in the first half yet,” he said.

Power is the lifeblood of data centersBut data centers are not delivery and operation, and requires abundant amounts of electricity for power and fans to maintain cold infrastructure. With the transfer of artificial intelligence from the early experience to the application scale, the need for low -efficiency data centers will increase near the final users, but it will take some time until the correct group fades from the expected square shots.

“The size of the new data centers is increasing dramatically so that the network cannot keep up with,” said Alan Shore, the chief trading official at MicroGRID Developer Enchanted Rock. Three years ago, a large 60 -megawatt data center – enough strength to supply 20,000 homes, now says new data centers to support all artificial intelligence uses requiring 500 megawatts or more.

This rapid growth in the use of electricity leads a new demand for manufacturing and electricity, which weighs together on supply and infrastructure. Data centers constitute a unique challenge to the facilities, which must ensure that you can save energy for all customers, even at peak times for demand. “This is the reason why some facilities are quoting waiting times for the long delivery of data centers,” said Shor. He added: “The facilities need to invest in the new sub -stations and you may also need to expand the scope of transmission and generation, and all of this takes time.”

CBRE has seen that data centers move from 2 % of their wallets in 2022 to 10 % in 2024, and Lynch expects to continue to grow, and leads near the current market energy, as it searches the data center’s thunderbolt to areas that reach abundant strength. Georgia, Texas and Ouhyu are investigating many of the boxes that builders are looking for, and if the region does not have a network capacity or infrastructure, it must be able to expand quickly.

“The presence of a great energy availability within 36 months is attractive to customers,” Lynch said.

Three per cent of the world’s strength is now linked to databases, according to Datacenters.com.

Shore said the charming Rock data indicates that there is a lot of energy available to meet the demand – most of the time. Of the 8,760 hours of the year, the network is only under pressure on a small part of it. “If we can reduce the demand for the network for 100 to 500 hours, the long interconnection delays can be shortened,” he said.

There is an important discrimination that must be eliminated between the idea of ​​the wider slowdown and some of the last temporary suspension between the major technology companies, according to the MCKINSEY & Company partner, Pankj Sachdeva, who is looking to develop the data center and expect a decrease and flow.

Based on the last MCKINSEY modeling, which does not include the effects of definitions, it is expected that the data center market is expected to grow in a range of 20 % to 25 % over the past five to the next seven, but there will be differences in the growth rate. “It will not be a mistake,” he said.

Customs tariff changes will provide new cost pressure through the data center supply chains, especially with critical metal tariffs on the horizon.

“These disturbances will increase the costs of devices, affect the resource determination strategies, and require companies to rethink the long -term purchasing models,” said John Archer, chief shift in the Slalom Consulting Series. In the short term, artificial intelligence providers and clients will need to implement cost -reducing strategies such as re -negotiation of suppliers contracts and improving inventory.

“In the long run, it can be expected to adapt to geographical prediction, joint manufacturing in tariff -friendly areas, and deeper integration of the supply chain analyzes driven by artificial intelligence with advanced commercial policies,” said Archer.

One of the unchanged factors is that the strength of the account is currently expensive, and many factors needed for artificial intelligence programs and devices, according to Sorech Venkatisan, CEO of Poet Technologies, a circulating company for the public that develops energy solutions for data centers. He said: “The explosion in data centers is challenged from artificial intelligence to find more efficient solutions because artificial intelligence requires that energy be calculated in this size to the point that it is not similar to anything we have seen at all.” “Although one of the data center project may reach the wall, it is likely that others will arise, because there is no indication of slowing the demand for contact,” he added.