Data Center Frenzy Triggers Distress Warning in Industry Survey

Investors are piling into massive debt packages to fund the data centers that feed the artificial intelligence infrastructure, but a lack of visibility around long-term demand for computational power points to distress ahead for some players, according to an industry survey.

Global consulting firm AlixPartners polled around 400 senior executives in the data center industry, asking them to identify strengths and weaknesses across the space. Chief among concerns in the survey published Tuesday is that the current insatiable demand for data centers won’t be aligned with their future functionality and capabilities, resulting in disruption and consolidation in the space.

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