"The cycles of demand and supply in this particular case you can't really predict,"
"The biggest issue we are now having is not a compute glut, but it's a power and it's sort of the ability to get the [data center] builds done fast enough close to power."
"If you can't do that, you may actually have a bunch of chips sitting in inventory that I can't plug in. In fact, that is my problem today. It's not a supply issue of chips, it's the fact that I don't have warm shells to plug into,"
"If a very cheap form of energy comes online soon at mass scale, then a lot of people are going to be extremely burned with existing contracts they've signed."
Rapid AI adoption is increasing demand for GPUs and for electrical power, creating a mismatch between chip purchases and available power capacity. Microsoft has ordered more chips than it can power because data center builds and power connections lag GPU acquisition. Data center electricity demand has ramped up over five years, outpacing utilities' plans for new generation capacity. Developers increasingly rely on behind-the-meter power arrangements that feed electricity directly to facilities. Tech leaders warn that unpredictable cycles of compute demand and power supply make planning difficult. Cheap new energy sources coming online at scale could leave firms locked into unfavorable contracts.
Read at TechCrunch
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