Jun. 18 at 3:17 AM
$AES AI 'Factories' Are Hungry for Power. Expect 'Gigawatt-Scale' Growth. -- Barrons.com
06/17/25 3:10 PM
Al Root
Did you know that artificial intelligence works in "factories?" It does, but without an artificial lunchbox and an artificial hardhat.
Factories are what AI chip maker Nvidia and electrical infrastructure supplier Schneider Electric call the data centers where ChatGPT or Alphabet's Gemini learn to answer users' questions and then help teenagers summarize The Odyssey. The Tesla computers behind the company's planned robo-taxi service are another example.
Those factories will be using a lot more power for a long time
BofA Securities forecasts data-center spending will grow 12% a year on average for the coming few years, hitting more than
$400 billion by 2028. That is money for servers, networking, and storage. Including money for electrical components, cooling, and engineering, the number jumps to more than half a trillion by 2028, for a gain of 16% a year on average.