AI data center boom sets up a surge in computing power

Hundreds of major data centers under construction from the American Midwest to the Persian Gulf are expected to deliver a sharp increase in the computing power used to train and run AI. Epoch AI estimates about 20 million AI chips are now in data centers worldwide and projects about 200 million by the end of 2028, a rise that could make recent breakthroughs in math, science and cybersecurity feel more routine.

Tech leaders say the expansion reflects confidence in scaling laws, the view that more data and computing power will make AI systems more capable. Amazon, Google, Microsoft, Meta and other companies are racing to secure chips, land and power, while investment in AI infrastructure is forecast to top $1 trillion globally by 2029, up from $318 billion last year.

The build-out is also drawing resistance over electricity demand, water use, environmental effects and potential increases in power prices. Data centers consumed 64 gigawatts of electricity globally last year, and that demand is expected to quadruple by the end of 2030. The United States remains far ahead, with about 5,500 data centers and companies that control about 80 percent of global AI computing power, while China is pushing to close the gap despite chip restrictions.