"Jigar Shah claims the industry 'can't build more than 50 gigawatts of data centers between now and 2030', while announced commitments are 'creating havoc at the level of 500 gigawatts across the country.'"
"In Texas, Shah cites filings suggesting 'the load queue could be 300 gigawatts' against a current system running around 70 gigawatts, forecasting only 30 gigawatts will actually be built."
"Microsoft reported Q3 FY26 capex of $30.876 billion, up 84.39% year over year, with an AI run rate of $37 billion, indicating significant investment in data center capacity."
"Amazon spent $44.2 billion on capex in Q1 FY26, with guidance suggesting about $200 billion across 2026, reflecting the high demand for data center infrastructure."
Jigar Shah asserts that the tech industry's claims about data center capacity are exaggerated. He believes only 50 gigawatts can be built by 2030, while commitments suggest 500 gigawatts. Key constraints include the grid, transformers, GPUs, memory, and CPUs. In Texas, the load queue could reach 300 gigawatts, but Shah forecasts only 30 gigawatts will be built. Major companies like Microsoft, Amazon, Alphabet, and Meta are significantly increasing their capital expenditures, indicating high demand for data centers despite the limitations.
Read at 24/7 Wall St.
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