UII UPDATE 299 | NOVEMBER 2024
Intelligence Update
Record investment masks a related trend: rising costs
During periods of high growth, investors tend to look more at the top line than the bottom. The data center sector, with or without AI, is booming: demand will continue to be explosive for many years yet, with very strong revenues and profits to come. Investment levels, and then revenues, receive all the attention.
This unprecedented level of investment around the world has, however, been accompanied by another, often overlooked trend: rising costs. Data centers are becoming more expensive to build, buy, lease and operate.
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