Artificial intelligence is sweeping industries at warp speed with developments that could make our current business modus operandi look as archaic as the floppy disk, and in very short order. The use of resources to power such a future will be immense. Given the increasing demand, what will be the fuel that thrusts this technology into the future?
Hyperscalers are large data centers that use millions of servers to provide computing power and data storage to billions of users around the world. AI has supercharged the demand for data centers and, consequently, the energy required to power them.
The leading hyperscalers are Microsoft’s Azure, Meta, Amazon’s AWS, Oracle and Alphabet’s Google Cloud. Collectively, between just these companies, JPMorgan estimates capital expenditures in AI could reach $191 billion by the end of 2024. This figure exceeds 2023’s $126 billion investment and towers well above the $23 billion invested just 10 years ago. It’s hard to fathom what the spend on AI will be 10 years from now.
You can read the full article by Senior Portfolio Manager, Director of ESG Strategies Andy Drennen in the Springfield Business Journal. Shared with permission from the Springfield Business Journal.
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