<\/p>\n
The global AI industry needs to earn $6 trillion in annual revenue by 2031 to justify the capital being deployed to build data centres around the world, Bain & Co said.<\/p>\n
Existing consumer and enterprise AI services may generate as much as $1.8 trillion of that sum, leaving $4.2 trillion in new revenue that needs to be created, the consulting firm said Tuesday in its annual global technology report.<\/p>\n
The shortfall likely will come from nascent segments ranging from autonomous machines to robotics as well as emerging fields such as drug discovery, mental health and energy generation, it said.<\/p>\n
\u201cWhat the industry needs is a wave of innovation that will dwarf what mobile and cloud unlocked,\u201d said David Crawford, the report\u2019s lead author and chairman of Bain\u2019s Global Technology, Media, and Telecommunications practice.<\/p>\n
\u201cAI infrastructure is being built well ahead of the demand curve and funding it sustainably will require adding approximately 1% to the annual global GDP growth rate,\u201d he said.<\/p>\n
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Bain\u2019s report highlights the hurdles ahead to make the current pace of AI development sustainable.<\/p>\n
Read:
AI\u2019s existential fears meet Wall Street financing Fomo in Europe
AI data centres could make electricity more expensive
Thailand puts 49 data centres on hold over resource strain<\/p>\n
Companies led by Microsoft Corp, Alphabet\u2019s Google, Amazon.com, Meta Platforms and Oracle Corp are investing trillions of dollars in data centres to quench AI\u2019s demand for computational resources.<\/p>\n
Data centre sizes and costs are doubling roughly every 12 to 16 months, in part due to surging prices of chips from the likes of Nvidia Corp and SK Hynix, networking equipment and other components.<\/p>\n
The report comes as debate intensifies around the as-yet elusive returns for AI service providers. Critics worry about an increasingly interconnected web of dependencies between technology manufacturers and AI developers that help to propel lofty expectations that in turn require bigger sums of money.<\/p>\n
While discussions today are fixated on employee productivity, the economics of AI infrastructure will demand trillions in new revenue beyond productivity gains, Bain said.<\/p>\n
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Read: From momentum to quality: The next phase of the technology trade<\/p>\n
The consultancy projects $5 trillion to $6.5 trillion of data-centre spending by 2030, adding at least 150 gigawatts of capacity that will further strain countries\u2019 energy resources. Annual spending on AI infrastructure \u2013 spanning data centre, computing capacity and upgrades in accelerators and memory chips \u2013 may reach as much as $1.5 trillion by 2031, it said.<\/p>\n
Data centre developers already face shortages in transformers and water and power supplies, as well as fierce local opposition that\u2019s blocked or delayed $68 billion worth of projects in the June quarter in the US.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#faces #6trn #test #justify #data #centres #Bain<\/p>\n","protected":false},"excerpt":{"rendered":"
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