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There Are Signs of Serious Trouble in the Data Center Industry: "People aren’t just dropping their shorts for data centers anymore." (futurism.com)
submitted 3 days ago by to c/technology@lemmy.world
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[+] -22 points 3 days ago (18 children)

As someone on the inside, I can assure you that the buyers put down money up front for a specified product and delivery date. There is no speculation involved. They line up to give us money. Unless Microsoft et al. goes bankrupt, we keep building.

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  • [–] 29 points 3 days ago* (4 children)

    It's not an issue of prediction, or prophesy, it's that all the available information right now looks like a classic bubble. could it find profitably? idk. is it profitable? No. is there billions or trillions in debt changing hands too fast for anyone to keep track of? yes. is someone selling somke? most likely these are the situations in which con artists thrive. probably not everyone is intending to sell smoke. but not all of this is going to work out, some may come out on top, but some will fall, and that will be a bubble.

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  • [+] -9 points 3 days ago (2 children)

    Going a step further, the builders that build with environmental and community concerns first are more likely to endure. My company does exactly that.

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  • [–] 8 points 3 days ago (1 child)

    FTA:

    Drawing on data from regulatory intelligence outfit RegLayer, the FT reports that 47 large data center projects have already fallen through this year. Analysts at the equity research firm Bernstein only believe that about 35 percent of planned facilities are feasible.

    Would you dispute these claims, based on your experience?

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  • [–] -4 points 3 days ago* (last edited 3 days ago)

    Not at all. Most builders are clueless. They think that because they have money, they can solve any problems.

    Edit: Adding that site selection is HARD. Every developer with a spare farm plot wants in on the action. Most are completely inappropriate.

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  • [–] 6 points 3 days ago (5 children)

    lmao, which department do you work in that you're on lemmy right now? Mail, or maybe food service?

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  • [+] -8 points 3 days ago (4 children)

    Operations. DC manager.

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  • [–] 5 points 3 days ago (3 children)

    So, HR? I would delete your location, btw. Don't out yourself.

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  • [+] -6 points 3 days ago (2 children)

    There are more than a dozen datacenters within 30 minutes of my home.

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  • [–] 9 points 3 days ago (1 child)

    So, many are getting blocked and the AI bubble is going to pop in the next few years. Right now, this is where we stand. Notice, most are getting built where there is a lack of cool weather and water. Many states are starting to fight them because of this.

    https://www.electricchoice.com/datacenters/

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  • [–] 2 points 2 days ago

    Honestly, I am confused by the rushed build out. If I was wealthy, I would be trying to ensure that my wealth isn't being burned away for nothing. Having properly placed and authorized data centers would help protect my investment.

    The Dotcom bubble and the 2008 housing crisis are still in living memory. Are the wealthy just that unaware - or worse, uncaring - about how things could play out? 🤨

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  • [–] 4 points 3 days ago

    I hate AI too but nothing this person is saying rings untrue to me. Even the article admits that data centers continue to be built, albeit slower. I know we all want the bubble to pop, but that could still be a ways off.

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  • [–] 4 points 3 days ago (5 children)

    Sure, Jan.

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  • [–] -3 points 3 days ago (4 children)

    If we are not going to have honest discussion, why participate? Lemmy should be better.

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  • [–] 8 points 3 days ago (3 children)

    So a post making claims against all visible evidence with no proof for any of it is "honest discussion"?

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  • [+] -7 points 3 days ago (2 children)

    You ask "why believe me?" I ask " why take you seriously?" And we get nowhere.

    The popular opinion is framed in view of the worst offenders. That gets clicks. My daily experience shows me that:

    • one urinal in my building uses more water in a day than the datacenter does in a year.
    • our generators run at less than 65 dB at full tilt at a distance of 30 feet. They are only run during utility outages - and monthly tests for 10 minutes.
    • we build in corporate parks and remote sites with surplus power.
    • the power substation we paid for and built delivers 20 MW back to the community. We added capacity to the local area on our dime.

    However, others are not like us. Musk runs gas turbines for primary power. MS uses open- loop cooling. They get the headlines. We don't. Our business is based on responsible behavior. But we get painted with the same brush.

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  • [–] 12 points 3 days ago (1 child)

    Ok, even assuming all that is true (just saying it doesnt make it so) none of it has anything to do with the inherent unprofitability of AI. Anthropic alone is reporting an $80 billion loss for the year. Last I heard the industry as a whole needs to make a few trillion dollars just to break even. Regardless of how efficient or not your particular data center may be, it's not going to fill that gap.

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  • [+] -9 points 3 days ago

    Agreed. Oai, Anthro, etc don't necessarily have paths forward. But a LOT of folks want their hands on the results. Perhaps real open sw will rise to put them under and no one will need to pay for the models. But they will have to pay for the hardware to run it. And that's pricey. And we get paid up front.

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