Data Centers

HSBC CEO Georges Elhedery and General Atlantic CEO William Ford addressed concerns about the disconnect between massive AI infrastructure investments and revenue growth at a Hong Kong summit. While acknowledging AI’s transformative potential, they cautioned that significant productivity gains and consumer willingness to pay for AI-driven services are longer-term prospects, potentially lagging behind investor expectations. Ford compared AI to railroads and electricity, technologies with profound impacts realized over extended periods, highlighting the need for patience and awareness of early-stage pitfalls like capital misallocation.

Fueled by megacap tech stocks, particularly Nvidia, the S&P 500 and Nasdaq reached intraday highs. Nvidia’s valuation surpassed $5 trillion after projecting substantial data center visibility, exceeding Wall Street estimates due to surging AI demand. Potential easing of US-China trade restrictions could further boost Nvidia’s growth. Corning also rebounded, poised to benefit from the increasing demand for fiber optic cables in data centers supporting AI. Investors are awaiting the Federal Reserve’s interest rate decision amidst earnings reports.

Meta CEO Mark Zuckerberg is doubling down on AI, allocating $14.3 billion to Scale AI and restructuring Superintelligence Labs. This significant capital expenditure fuels Meta’s AI capabilities and data center expansion, partnering with Oracle, Google, and CoreWeave. While Meta projects long-term returns, analysts express concerns about escalating AI spending and a potential valuation bubble. Despite increased capital expenditure guidance, market reaction was mixed, with some uncertainty about profitability and returns. Meta’s revenue growth, driven by AI, supports its confident investment strategy.

Corning’s (GLW) shares dipped 2.5% after a strong year, seen as profit-taking by analysts. CNBC reiterated its buy rating and raised the price target to $95, citing compelling growth prospects. Q3 core revenue rose 14% to $4.27B, and EPS increased 24% to $0.67, both exceeding estimates. Growth is fueled by data center demand (driven by AI), an expanded Apple partnership, and the Springboard initiative. Corning is strategically positioned in the solar energy market and anticipates strong Q4 sales. The company is also adapting to AI-driven demands.

Google and NextEra Energy are partnering to revitalize Iowa’s Duane Arnold nuclear power plant, aiming to provide 24/7 carbon-free energy for Google’s expanding AI infrastructure. The plant, closed in 2020, could restart in 2029 pending approvals. This reflects a growing trend of using nuclear energy to power data centers, driven by increasing electricity consumption due to AI. The partnership highlights the need for investments in reliable, clean power to support the AI-driven economy while addressing environmental concerns. The Iowa project could serve as a model for future collaborations.

OpenAI urges the U.S. to invest heavily in new energy infrastructure to compete with China in AI. Projects like “Stargate” demand enormous power, straining the U.S. grid. OpenAI advocates adding 100 gigawatts of new energy capacity annually to avoid an “electron gap” and secure leadership in AI. They highlight China’s rapid power expansion as a concern. Increased AI power demands could spur investment in renewable energy and grid infrastructure.

Groq CEO Jonathan Ross highlights Saudi Arabia’s potential to become a major AI infrastructure hub due to its abundant energy resources, aligning with Vision 2030. The Kingdom’s low energy costs, even compared to some Nordic countries, and strategic location make it ideal for data centers. Ross envisions Saudi Arabia as a net data exporter, emphasizing the cost-effectiveness of data transmission versus electricity. Localizing AI computation near energy sources minimizes costs and leverages underutilized energy capacity, attracting tech firms and fostering regional AI innovation.

Sify Technologies (NASDAQ: SIFY) will release its Q2 FY2025-2026 financial results on October 25, 2025, before market open. A conference call to discuss results will be held on October 27, 2025, at 8:30 AM ET, hosted by Raju Vegesna and M P Vijay Kumar. Sify, a leading Indian ICT solutions provider, focuses on data centers, cloud, networks, and security, catering to India’s digital economy. Webcast and replay details are available on Sify’s website.

Credo, a semiconductor company specializing in high-speed connectivity, has seen its stock surge due to increasing demand for its active electrical cables (AECs) in AI infrastructure. Its AECs are crucial for connecting AI servers in data centers, with major clients like Amazon and Microsoft utilizing Credo’s signature purple cables. The company’s revenue doubled in fiscal year 2025, driven by the AI boom and hyperscalers’ data center expansions. While facing competition, Credo is expanding its product portfolio and collaborating with hyperscalers to meet the insatiable demand for AI connectivity solutions.

US electricity providers face escalating demand projections driven by the AI boom, creating forecasting challenges due to tech companies’ competitive utility negotiations and duplicated project proposals. This strains grid reliability and potentially raises electricity prices, while regulatory pressures to decarbonize add complexity. Experts debate the accuracy of demand forecasts, with some fearing overvaluation in the stock market. While infrastructure investment surges, concerns remain about supply chain constraints and the pace of new generation capacity, pushing focus towards renewables and alternative solutions like on-site power generation.