# Data centres and cloud: Chokepoints and risks

Server halls and cloud providers renting compute, storage and networks; heavy power users

Source page: https://www.materialinsights.org/industries/data_centres/risks/

#### 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 US^[1](https://www.iea.org/reports/energy-and-ai/executive-summary)^,^[5](https://www.eenews.net/articles/data-center-surge-is-driving-up-transformer-costs/).
- AI accelerators depend on one dominant designer (Nvidia data-centre revenue US$ 193.7 billion in fiscal 2026), one leading foundry and scarce advanced packaging^[6](https://www.sec.gov/Archives/edgar/data/1045810/000104581026000019/q4fy26pr.htm).
- Three US clouds hold 58% of hyperscale capacity and the US 55% of it, raising concentration and sovereignty concerns^[3](https://www.ciodive.com/news/hyperscaler-capex-cloud-ai-building-boom-bubble-srg/808618/).
- Capex of about US$ 142 billion a quarter assumes AI demand keeps rising; a slowdown would leave stranded capacity and debt^[3](https://www.ciodive.com/news/hyperscaler-capex-cloud-ai-building-boom-bubble-srg/808618/).
- Cooling water use and diesel backup face growing local opposition and regulation, notably in water-stressed Indian cities.

## Other sections

- [Overview](https://www.materialinsights.org/industries/data_centres/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/data_centres/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/data_centres/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/data_centres/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/data_centres/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/data_centres/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/data_centres/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/data_centres/sources/index.md)