[BusinessInsider] AI companies are spending billions on data centers in the race to AGI. IBM CEO Arvind Krishna has some thoughts on the math behind those bets.
Data center spending is on the rise. During Meta's recent earnings call, words like "capacity" and AI "infrastructure" were frequently used. Google just announced that it wants to eventually build them in space. The question remains: will the revenue generated from data centers ever justify all the capital expenditure?
On the "Decoder" podcast, Krishna concluded that there was likely "no way" these companies would make a return on their capex spending on data centers.
Couching that his napkin math was based on today's costs, "because anything in the future is speculative," Kirshna said that it takes about $80 billion to fill up a one-gigawatt data center.
"Okay, that's today's number. So, if you are going to commit 20 to 30 gigawatts, that's one company, that's $1.5 trillion of capex," he said.
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