The futile future of the gigawatt datacenter — by Nicholas Weaver

Tue, 11 Nov 2025 03:57:12 +1100

Andrew Pam <xanni [at] glasswings.com.au>

Andrew Pam
<https://pivot-to-ai.com/2025/11/07/the-futile-future-of-the-gigawatt-datacenter-by-nicholas-weaver/>

"The AI companies and related enterprises are currently spending huge amounts
in capital expenditures (CAPEX) to build “Gigawatt” class data centers for
various AI-related development.

The scale of the investment is so large it is distorting the economy. These
massive expenditures, however, are shortly going to prove to be at least a
half-trillion-dollar money pit: these massive data centers are simply not fit
for purpose.

But to understand why this is a waste of money, it is critical to discuss two
technologies: machine learning (ML) in general and large language models (LLMs)
in particular."

Cheers,
       *** Xanni ***
--
mailto:xanni@xanadu.net               Andrew Pam
http://xanadu.com.au/                 Chief Scientist, Xanadu
https://glasswings.com.au/            Partner, Glass Wings
https://sericyb.com.au/               Manager, Serious Cybernetics

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