“Dublin imposed a 2023 moratorium on new information facilities, Frankfurt has no new capability anticipated earlier than 2030, and Singapore has simply 7.2 MW accessible,” stated Kasthuri Jagadeesan, Analysis Director at Everest Group, highlighting the dire state of affairs.
Electrical energy: the brand new bottleneck in AI RoI
As AI modules push infrastructure to its limits, electrical energy is turning into a important driver of return on funding. “Electrical energy has shifted from a line merchandise in operational overhead to the defining think about AI challenge feasibility,” Gogia famous. “Electrical energy prices now represent between 40–60% of complete Opex in fashionable AI infrastructure, each cloud and on-prem.”
Enterprises at the moment are compelled to rethink deployment methods—balancing management, compliance, and location-specific energy charges. Cloud hyperscalers might achieve additional benefit as a result of higher PUE, renewable entry, and vitality procurement fashions.
“A single 15,000-watt module working repeatedly can price as much as $20,000 yearly in electrical energy alone, excluding cooling,” stated Manish Rawat, analyst at TechInsights. “That price construction forces enterprises to guage location, utilization fashions, and platform effectivity like by no means earlier than.”
The silicon arms race meets the ability ceiling
AI chip innovation is hitting new milestones, however the price of that efficiency is now not simply measured in {dollars} or FLOPS — it’s in kilowatts. The KAIST TeraLab roadmap demonstrates that energy and warmth have gotten dominant elements in compute system design.
The geography of AI, as a number of specialists warn, is shifting. Energy-abundant areas such because the Nordics, the Midwest US, and the Gulf states have gotten magnets for information middle investments. Areas with restricted grid capability face a rising threat of turning into “AI deserts.”