IEEE Techblog has called attention to the many challenges and risks inherent in the current mega-spending boom for AI infrastructure (building data centers, obtaining power/electricity, cooling, maintenance, fiber optic networking, etc) . In particular, these two recent blog posts: AI Data Center Boom Carries Huge Default and Demand Risks and Big tech spending on AI... Read more →| IEEE ComSoc Technology Blog
Big Tech plans to spend between $364 billion and $400 billion on AI data centers, purchasing specialized AI hardware like GPUs, and supporting cloud computing/storage capacity. The final 2Q 2025 GDP report, released last week, reveals a surge in data center infrastructure spending from $9.5 billion in early 2020 to $40.4 billion in the second... Read more →| IEEE ComSoc Technology Blog
Some worry costs will always be too high for profits. In a blog post on his company’s website, Harris Kupperman, a self-described boomer investor and the founder of the hedge fund Praetorian Capital, laid out his bearish case on A.I. infrastructure. Because the building needs upkeep and the chips and other technology will continually evolve, he argued that data centers will depreciate faster than they can generate revenue.| IEEE ComSoc Technology Blog
According to Gartner, global AI spending will reach close to US$1.5 trillion this year and will top $2 trillion in 2026 as ongoing demand fuel IT infrastructure investment. This significant growth is driven by hyperscalers’ ongoing investments in AI-optimized data centers and hardware, such as GPUs, along with increased enterprise adoption and the integration of AI into consumer devices like smartphones and PCs. | IEEE ComSoc Technology Blog
“Based on past infrastructure build-outs and how they led to bubbles,” the Meta CEO said on the Access podcast, it’s quite possible “that something like that would happen here.”| Fortune