Mon, 22 Sep 2025

Mon, 22 Sep 2025 What's the big deal about AI data centres?

Huge investment is going into data centres for AI, but why are they so expensive?

* Worldwide, $3tn (£2.2tn) will be spent on data centers that support AI between now and 2029.
* Half of this sum will go towards construction costs, while half will cover the cost of expensive hardware supporting the AI revolution.
* The UK alone is expected to see another 100 data centers built over the next few years to meet demand for AI processing.
* Microsoft has announced a $30bn (£22bn) investment in the UK's AI sector.
* Data centers have become "hyperscale" sites, with power requirements running into tens of megawatts or even gigawatts.
* The Large Language Models (LLMs) that train up AI software require a network of computers working together in extremely close proximity to process tasks efficiently.
* This requires density, which eliminates processing bottlenecks and allows for parallel processing. However, it also increases energy consumption and presents challenges for local grids.
* Data center operators are using various methods to manage energy demand, including investing in renewable energy projects.
* The industry is aware of the environmental impact of AI data centers, including water consumption for cooling.
* Some experts believe that the current spending boom behind AI data centers cannot last forever, while others argue that AI will continue to have a significant impact and require substantial resources.
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