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Key Facts
The artificial intelligence (AI) market is witnessing soaring valuations, reminiscent of the dot-com bubble in the late 1990s. A report from McKinsey & Company predicts that approximately $7 trillion will be invested in new data center buildouts over the next five years to meet the increasing demand for AI.
As of 2023, global data center capacity is projected to nearly triple from 82 gigawatts today to 219 gigawatts by 2030, with about 70% of this growth driven by AI workloads. Despite concerns over inflated valuations among AI leaders, McKinsey’s data suggests that this spending surge signifies a structural demand rather than a market bubble.
These investments are set to reshape economies, leading to sustained cash flow and profits for companies involved in AI infrastructure, including semiconductor manufacturers and cloud service providers.
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