SoftBank Group is prepping to build a new AI data center in Ohio that could reach 10 GW of power demand and cost $30 billion to $40 billion for the computing infrastructure and a further $33 billion for a natural gas power plant, reports Bloomberg.
When completed, the new site could be one of the largest AI data centers ever built. Furthermore, it will be powered by one of the world’s largest fleets of gas turbines, equivalent to the energy supply of nine nuclear reactors.
I don’t get it. $70-80 billion for an AI data center, plus continued investment for hardware upgrades - how are they planning on making money from this?
I get that we’re in a bubble but I’ve never seen this level of collective delusion/desperation before in the tech space.
They’re not.
I want to be clear; they want to and expect to make money from this. But they have no plan for how to.
Right now absolutely no one in the data centre industry can figure out the math for how to make a profit. But because everyone else is building data centres, they’re all just assuming that someone else has figured it out and they don’t want to miss the boat.
The emperor wears no clothes.
Well, let’s fire 30 million white collar employees and charge $1k/year for an AI replacement. That’s $30 billion a year every year!