Data centres and cloud: Chokepoints and risks
Server halls and cloud providers renting compute, storage and networks; heavy power users
Chokepoints and risks
- Power is the binding constraint: the IEA projects data-centre demand more than doubling to about 945 TWh by 2030, ahead of many grids' ability to connect, while transformer waits reach up to four years in the US1,5.
- AI accelerators depend on one dominant designer (Nvidia data-centre revenue US$ 193.7 billion in fiscal 2026), one leading foundry and scarce advanced packaging6.
- Three US clouds hold 58% of hyperscale capacity and the US 55% of it, raising concentration and sovereignty concerns3.
- Capex of about US$ 142 billion a quarter assumes AI demand keeps rising; a slowdown would leave stranded capacity and debt3.
- Cooling water use and diesel backup face growing local opposition and regulation, notably in water-stressed Indian cities.