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Within six years, building the leading AI data center may cost $200B


Leading AI data centers in the recent future may be hugely expensive and energy-sucking, according to a new study.

Data centers to train and run AI may soon contain millions of chips, cost hundreds of billions of dollars, and require power equivalent to a large city’s electricity grid, if the current trends hold. According to the Georgetown, Epoch, and Rand study, the hardware costs for AI data centers like xAI’s Colossus, which has a price tag of around $7 billion, increased 1.9x each year between 2019 and 2025, while power needs climbed 2x annually over the same period. AI data centers also pose other environmental threats, such as high water consumption, and take up valuable real estate, as well as erode state tax bases.

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