Here’s what’s actually happening: data center deals are being funded by eager private credit gargoyles that don’t know shit about fuck. These deals are announced, usually by overly-eager reporters that don’t bother to check whether the previous data centers ever got built, as massive “multi-gigawatt deals,” and then nobody follows up to check whether anything actually happened.
I like how not only this captures my expectation but also my feelings. Now tell us how you really feel. haha.
Not to sound unprofessional or nothing, but what the fuck is going on? We have 241GW of “planned” capacity in America, of which only 79.5GW of which is “under active development,” but when you dig deeper, only 5GW of capacity is actually under construction?
@BlokchainB may I know your thoughts about this one? Is it too bearish?
Let's hope that these paper dollars in the backlog materialize! The tail of the backlog has the most risk as none of the customers are profitable on small scale... and there is really no evidence that this massive scale-up is actually going to earn its investment back end-to-end.
The nice thing for the construction companies is that if that were to be the outcome, the FO trails the FA on that, and they're at the start of the pipeline. I'd grow more wary over time, I guess.
Yeah and the overall opportunity cost of firms chasing data center nectar meanwhile other work doesn’t get done or gets done at an inflated price. A project out of my office went out to bid recently the bids came back $60M higher than our estimate!
The good ol we got so much work we will only do this project at this highly inflated price!
Apart of me thinks they can get to profitability but another part thinks maybe not. Most normal folks aren’t really using AI. Or don’t care to pay for it.
the overall opportunity cost of firms chasing data center nectar meanwhile other work doesn’t get done
This is always the shit with bubbles. One of my buddies in Canuckland was building hospitals and schools because that was what was needed most. He says their whole pipeline is now datacenters. So don't get sick.
Or don’t care to pay for it.
This. And if it really takes away all the jobs, then how is anyone going to pay for anything in the first place?
I like how not only this captures my expectation but also my feelings. Now tell us how you really feel. haha.
@BlokchainB may I know your thoughts about this one? Is it too bearish?
Well the construction companies like Turner are raking in the dollars.
But cities are getting keen to the game these tech giants are playing thus making cap ex more expensive.
While the article is definitely bearish the AI boom has kept the construction sector afloat from a private investment standpoint
Let's hope that these paper dollars in the backlog materialize! The tail of the backlog has the most risk as none of the customers are profitable on small scale... and there is really no evidence that this massive scale-up is actually going to earn its investment back end-to-end.
The nice thing for the construction companies is that if that were to be the outcome, the FO trails the FA on that, and they're at the start of the pipeline. I'd grow more wary over time, I guess.
Yeah and the overall opportunity cost of firms chasing data center nectar meanwhile other work doesn’t get done or gets done at an inflated price. A project out of my office went out to bid recently the bids came back $60M higher than our estimate!
The good ol we got so much work we will only do this project at this highly inflated price!
Apart of me thinks they can get to profitability but another part thinks maybe not. Most normal folks aren’t really using AI. Or don’t care to pay for it.
This is always the shit with bubbles. One of my buddies in Canuckland was building hospitals and schools because that was what was needed most. He says their whole pipeline is now datacenters. So don't get sick.
This. And if it really takes away all the jobs, then how is anyone going to pay for anything in the first place?
Yeah those who are into tech and have white collar jobs are geeking out over AI but my barber could care less.
If this trend changes one must ask will people fork over a few bucks to have a personal agent to trivial things like pay bills or book a flight?
Most will want AI to make money but AI’s can’t they suck at trading!
Maybe it can do more marketing and drive more customers but even that has a cost. AI doesn’t have unlimited reach.
your barber is safe from ai