Data Center Power Shortages Threaten AI and Crypto Infrastructure Boom
Warren Buffett's timeless warning about bubbles finds new relevance as a critical bottleneck emerges in tech infrastructure. Three Amazon data centers in Oregon stand empty, their advanced GPUs idling without power connections. Microsoft CEO Satya Nadella confirms the crisis extends industry-wide, with AI chip inventories trapped offline due to inadequate power infrastructure.
The disconnect between facility construction and utility capacity has reached breaking point. CBRE's Kristin Hammond notes power poles now lag behind data center development, rendering billions in hardware investments temporarily unproductive. Yet investment continues unabated—data center spending is projected to double this year, creating what analysts warn could become a dangerous imbalance between capacity and utilization.
