Dot com era crash on the cards for AI datacentre spending? It’s a ‘risk’
With new investments flowing into the datacentre industry, some are beginning to draw unsettling parallels between today’s market and the dotcom bubble. As AI drives datacentre demand, concerns about potential over-investment loom large, echoing the past mistakes of tech frenzy.
Key Points
- The datacentre mergers and acquisitions reached a record $73 billion in 2024, reflecting investor enthusiasm.
- Concerns are growing that the current investment climate may be overheating, reminiscent of the dotcom era.
- Digital Realty’s Fabrice Coquio warns that new investors without experience in AI and datacentres could contribute to a bubble.
- Data from McKinsey indicates a potential demand for datacentre capacity could rise significantly in the coming years.
- Analysts have mixed views on the viability of the current market, with some citing real monetisation opportunities in AI, while others caution against unrealistic expectations.
Why should I read this?
If you’re in the tech or investment world, this article is a must-read. It lays out the cautionary tale of potential overspending in a market that’s caught the AI fever. It’s like déjà vu for those who lived through the dotcom crash—worth a read to stay ahead of the curve and avoid repeating the same mistakes!
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