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Short-Seller Jim Chanos Warns Of Overbuilding Data Center Capacity, Compares AI Boom To Fiber Optic Bubble Of 2000s

Benzinga LogoBenzinga1d ago

Short-Seller Jim Chanos Warns Of Overbuilding Data Center Capacity, Compares AI Boom To Fiber Optic Bubble Of 2000s - Benzinga

Quick Summary:

What Happened: In a recent exchange on X, Chanos challenged industry optimism about data center growth, particularly amid the artificial intelligence boom.“I can still hear the fiber optic cable guys saying demand was ‘infinite’ in 2000, because internet traffic was doubling every quarter (it wasn’t),” wrote Chanos, referencing his experience teaching about the WorldCom case.

Renowned short-seller Jim Chanos is warning of potential overbuilding in the data center sector, drawing parallels to the 2000 fiber optic bubble, even as tech giants Microsoft Corp.(NASDAQ:MSFT), Amazon.com Inc.(NASDAQ:AMZN), and Alphabet Inc.(NASDAQ:GOOG) (NASDAQ:GOOGL) Google announce massive expansion plans.

The warning comes as Microsoft plans to spend $80 billion on AI-enabled data centers in fiscal 2025, with over half allocated to U.S.projects.


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Article Details

Author / Journalist: Kaustubh Bagalkote

Category: Technology

Markets:

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News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-06 @ 09:01:16 (1 days ago)

News Timezone: GMT +8:00

News Source URL: benzinga.com

Language: English

Article Length: 429 words

Reading Time: 3 minutes read

Sentences: 20 lines

Sentence Length: 22 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Benzinga

News ID: 24913592

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