Core Insights - The artificial intelligence industry is facing a significant constraint due to a shortage of powered data centers, leading to idle AI chips at Microsoft [1][2] - Microsoft CEO Satya Nadella emphasized that the primary issue is not a surplus of computing power but rather a lack of adequate energy and cooling capacity in data centers [2] - Microsoft has decided to slow or pause some early-stage data center projects to address these energy constraints as part of a major infrastructure scaling initiative [3] Industry Responses - Alphabet Inc.'s Google has entered into demand-response agreements with U.S. utilities to manage data center power usage during grid events and optimize computing schedules [4] - Amazon.com Inc. is also working on improving data center efficiency and supporting grid reliability in response to the growing demands of AI [4] Market Risks - OpenAI CEO Sam Altman warned of potential risks associated with long-term energy contracts, particularly if cheaper energy sources become available, which could negatively impact companies with existing agreements [5] - Altman noted that lower computing costs could lead to increased demand, further straining already near-capacity infrastructure, highlighting the importance of stable energy access for the growth of AI [6]

The surging cost of energy and power offers a viable, if tricky, line of attack on Republicans, says @liamdenning (via @opinion) https://t.co/7FFBjDEfMC ...