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🚨 DOOMSDAY VAULTS: THE NUCLEAR BUNKERS THAT STORE YOUR MESSENGER CHATS Nuclear bunkers from the Cold War are now hosting your cloud selfies, Spotify streams, and grandma’s cookie recipe. Big Tech is retrofitting underground caves, bomb shelters, and even Arctic mines into “apocalypse-proof” data centers that promise your files...

90,238 Aufrufe • vor 10 Monaten •via X (Twitter)

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David Friedberg: Michael Burry’s Datacenter Math is Wrong “I actually think Michael Burberry's got this wrong.” “What Michael Burry is saying is that all of these hyperscalers have extended their depreciation schedule or the useful life of their data centers by roughly 2x, which cuts the operating costs in half when they report it in earnings. And so it's making their earnings inflate.” “So he's claiming they're cooking the books. Google first made this change in Q1 of 2021, where they said the servers are now going from 3 to 4 years. Separately in 2021, Google took networking equipment from 3 to 5 years. And then in 2023, they took it from 5 to 6 years.” “And so this is a result of this effort where they went in and did an analysis. So what happened?” “What happened in the data centers is that the data centers transitioned from being primarily data storage and data transfer systems, where you would use hard drives and RAM and memory to store data and then transmit it back out, to being data processing centers because of the AI boom.” “So as AI became more important in the data center, more of the dollars that are going into data centers were allocated towards chips from data storage, which initially was hard drives.” “And then suddenly, when you put these processors in to process the data to do AI, the majority of the spend and the majority of the energy is going towards the processors.” “I made some calls and I checked around with some other friends, and everyone says the same thing: that these 7-8 year old TPUs and GPUs that are sitting in the data centers are still being used and they're being used at 100% utilization.” “So that actually justifies and validates the depreciation schedule being much longer versus shorter.”

The All-In Podcast

304,297 Aufrufe • vor 8 Monaten

In the next 15 years, data centers are expected to add an additional $160 billion to grid costs in the US Estimate say electricity rates for average households will spike by as much as 70% Data centers are projected to triple their share of US electricity demand in the next few years The main driver is the explosive growth of data centers built by Big Tech companies like Amazon, Meta, Microsoft, Google, OpenAI and more to power artificial intelligence Places like Northern Virginia already has over 200 data centers with massive new ones planned. Utilities are striking secret proprietary deals with Big Tech companies. These are hidden behind NDAs that shift much of the infrastructure costs onto regular residential customers Just in the PJM energy market of 13 states covering 65 million people, data centers were responsible for 63% of last year’s record 800% spike in capacity prices (This is INSANE) Residential customers in places like Virginia and Louisiana are being forced to subsidize billions in new power plants and grid upgrades for data centers. An Examples of this is in Louisiana, Meta’s data center deal leaves the public potentially on the hook for half or more of a $3–4 billion power plant Again, without major policy changes, average household electricity bills could rise by up to 70% over the next 15 years due to data center demand. There is only one real way we can stop this, we must create a separate customer class for data centers Maryland and Oregon have already passed laws doing this Forces data centers to pay for the specific infrastructure they need instead of spreading the costs to everyone else. More states need to do the same Ban secret sweetheart deals Require full public disclosure of all contracts between utilities and Big Tech Prohibit deals where data centers pay below the actual cost of service Make data centers pay the full cost of new power plants and grid upgrades Change regulations so utilities cannot socialize the cost of data-center-driven infrastructure to residential and small business ratepayers This needs to be done immediately

Wall Street Apes

57,720 Aufrufe • vor 1 Monat

Billion-Dollar Data Centers Are Taking Over the World | Lauren Goode, WIRED When Sam Altman said one year ago that OpenAI’s Roman Empire is the actual Roman Empire, he wasn’t kidding. In the same way that the Romans gradually amassed an empire of land spanning three continents and one-ninth of the Earth’s circumference, the CEO and his cohort are now dotting the planet with their own latifundia—not agricultural estates, but AI data centers. Tech executives like Altman, Nvidia CEO Jensen Huang, Microsoft CEO Satya Nadella, and Oracle cofounder Larry Ellison are fully bought in to the idea that the future of the American (and possibly global) economy are these new warehouses stocked with IT infrastructure. But data centers, of course, aren’t actually new. In the earliest days of computing there were giant power-sucking mainframes in climate-controlled rooms, with co-ax cables moving information from the mainframe to a terminal computer. Then the consumer internet boom of the late 1990s spawned a new era of infrastructure. Massive buildings began popping up in the backyard of Washington, DC, with racks and racks of computers that stored and processed data for tech companies. A decade later, “the cloud” became the squishy infrastructure of the internet. Storage got cheaper. Some companies, like Amazon, capitalized on this. Giant data centers continued to proliferate, but instead of a tech company using some combination of on-premise servers and rented data center racks, they offloaded their computing needs to a bunch of virtualized environments. (“What is the cloud?” a perfectly intelligent family member asked me in the mid-2010s, “and why am I paying for 17 different subscriptions to it?”) All the while tech companies were hoovering up petabytes of data, data that people willingly shared online, in enterprise workspaces, and through mobile apps. Firms began finding new ways to mine and structure this “Big Data,” and promised that it would change lives. In many ways, it did. You had to know where this was going. Now the tech industry is in the fever-dream days of generative AI, which requires new levels of computing resources. Big Data is tired; big data centers are here, and wired—for AI. Faster, more efficient chips are needed to power AI data centers, and chipmakers like Nvidia and AMD have been jumping up and down on the proverbial couch, proclaiming their love for AI. The industry has entered an unprecedented era of capital investments in AI infrastructure, tilting the US into positive GDP territory. These are massive, swirling deals that might as well be cocktail party handshakes, greased with gigawatts and exuberance, while the rest of us try to track real contracts and dollars. OpenAI, Microsoft, Nvidia, Oracle, and SoftBank have struck some of the biggest deals. This year an earlier supercomputing project between OpenAI and Microsoft, called Stargate, became the vehicle for a massive AI infrastructure project in the US. (President Donald Trump called it the largest AI infrastructure project in history, because of course he did, but that may not have been hyperbolic.) Altman, Ellison, and SoftBank CEO Masayoshi Son were all in on the deal, pledging $100 billion to start, with plans to invest up to $500 billion into Stargate in the coming years. Nvidia GPUs would be deployed. Later, in July, OpenAI and Oracle announced an additional Stargate partnership—SoftBank curiously absent—measured in gigawatts of capacity (4.5) and expected job creation (around 100,000). Microsoft, Amazon, and Meta have also shared plans for multibillion-dollar data projects. Microsoft said at the start of 2025 that it was on track to invest “approximately $80 billion to build out AI-enabled data centers to train AI models and deploy AI and cloud-based applications around the world.” Then, in September, Nvidia said it would invest up to $100 billion in OpenAI, provided that OpenAI made good on a deal to use up to 10 gigawatts of Nvidia’s systems for OpenAI’s infrastructure plans, which means essentially that OpenAI has to pay Nvidia in order to get paid by Nvidia. The following month AMD said it would give OpenAI as much as 10 percent of the chip company if OpenAI purchased and deployed up to 6 gigawatts of AMD GPUs between now and 2030. It’s the circular nature of these investments that have the general public, and bearish analysts, wondering if we’re headed for an AI bubble burst. What’s clear is that the near-term downstream effects of these data center build-outs are real. The energy, resource, and labor demands of AI infrastructure are enormous. By some estimates, worldwide AI energy demand is set to surpass demand from bitcoin mining by the end of this year, WIRED has reported. The processors in data centers run hot and need to be cooled, so big tech companies are pulling from municipal water supplies to make that happen—and aren’t always disclosing how much water they’re using. Local wells are running dry or seem unsafe to drink from. Residents who live near data center construction sites are noting that traffic delays, and in some cases car crashes, are increasing. One corner of Richland Parish, Louisiana, home of Meta’s $27 billion Hyperion data center, has seen a 600 percent spike in vehicle crashes this year. Major proponents of AI seem to suggest that all of this will be worth it. Few top tech executives will publicly entertain the notion that this might be an overshoot, either ecologically or economically. “Emphatically … no,” Lisa Su, the chief executive of AMD, said earlier this month when asked if the AI froth has runneth over. Su, like other execs, cited overwhelming demand for AI as justification for these enormous capital expenditures. Demand from whom? Harder to pin down. In their mind, it’s everyone. All of us. The 800 million people who use ChatGPT on a weekly basis. The evolution from those 1990s data centers to the 2000s era of cloud computing to new AI data centers wasn’t just one continuum. The world has concurrently moved from the tiny internet to the big internet to the AI internet, and realistically speaking, there’s no going back. Generative AI is out of the bottle. The Sams and Jensens and Larrys and Lisas of the world aren’t wrong about this. It doesn’t mean they aren’t wrong about the math, though. About their economic predictions. Or their ideas about AI-powered productivity and the labor market. Or the availability of natural and material resources for these data centers. Or who will come once they build them. Or the timing of it all. Even Rome eventually collapsed.

Owen Gregorian

55,427 Aufrufe • vor 6 Monaten

The biggest power grab since Standard Oil is happening today and almost nobody is paying attention. Tech companies are building their own power grid. They're about to produce more electricity than entire COUNTRIES. Right now at the White House, CEOs from Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI are signing a pledge that most people will scroll past. But it might be the most important business deal of the decade. They're committing to build, bring, or buy 100% of their own electricity for every new AI data center. Their own power plants. Their own transmission lines. Their own energy infrastructure. These are SOFTWARE companies agreeing to become power utilities. Here's why this matters for everyone reading this: By the end of this year, at least 5 US data centers will each consume over 1 gigawatt of continuous power. 1 gigawatt powers 850,000 homes. 5 of these facilities will use more electricity than some entire countries. The US grid physically cannot handle it. Capacity prices in the PJM grid, which covers 13 states, exploded from $28.92 per megawatt-day to $329.17 in just two years. That's literally a 1,000% increase. So what do you do when the grid can't support you? You stop using the grid. Amazon is buying nuclear reactors. Microsoft restarted Three Mile Island. Meta signed 20-year nuclear deals. Chevron is building a 2.5 gigawatt natural gas plant in West Texas specifically to power data centers. These companies aren't supplementing the grid. They're replacing it. For themselves. Think about what's actually happening here: 7 companies now control more computing power than most governments. And today they're signing paperwork to control their own energy supply too. Computing. Data. Energy. Infrastructure. That's not a "tech" company anymore. A Harvard energy law professor already called the pledge "meaningless" because utilities in PJM are spending tens of billions on power projects for data centers and those costs are STILL being spread across ratepayers anyway. The pledge has zero legal teeth. No enforcement mechanism. No compliance monitoring. No penalty for breaking it. It's a political move designed to get tech companies through the midterms without becoming the villain of every campaign ad about electricity bills. But the underlying shift is real and irreversible: Tech companies are becoming energy companies. Energy companies are becoming AI infrastructure. And the line between Big Tech and Big Energy is about to disappear completely. The big question here: When seven companies control both the world's intelligence AND the power that runs it, who exactly is governing who?

Ricardo

146,765 Aufrufe • vor 4 Monaten