Data Center Buildout Going Too Far: Bokeh Capital’s Forrest

Data Center Market Overview - The discussion revolves around the data center market, particularly concerning whether the current build-out is excessive given potential future technological advancements [1][4] - Some reports indicate existing data centers are facing challenges in selling their capacity, raising concerns about oversupply [3] Technological Innovation and AI Development - There's a belief that innovation will reduce the need for brute-force methods in AI training, potentially diminishing the demand for extensive data centers [4][11] - The AI race between the U S and China focuses on developing cost-effective and usable AI solutions [7] - Deep seek product from Asia demonstrates alternative approaches to AI development, potentially reducing reliance on massive data centers [5] Investment Strategies - Investment strategies should consider diverse options, including companies like Nvidia, AMD, Micron, and Intel, acknowledging the potential of AI [8] - AMD's valuation is predicated on participation in data center build-out, but the actual need for data centers may be less than currently anticipated [9][11] - The deployment of capital will likely shift as the industry moves away from brute-force methods [11] Challenges and Concerns - Data centers face challenges related to power, supply chain, and the need for specialized construction [2][5] - There are concerns about the financial viability of the current data center expansion plans, particularly regarding funding and the overall theory of needing so many data centers [10]