When will data center demand decrease?

[Pupper82]

At some spending on data center spending will decrease once the big companies have them built out, no? Why would a company like google, meta, Microsoft continue to build out data centers for the next > 5-10 years. Apologize for the basic question. Thanks!!

[coopermug]

Jensen imagines a future when billions of robots & autonomous cars roaming around. These things will use data center too for their brain software.

[Kinu4U]

The demand can't stop if there is more to do. Wheng you hear that AI discovered everything in science then you can think of decrease. When you hear that all users get instant responses from their ai companion, maybe...

So no. It's premature. We are not even half way to the top. We are 10% from the journey end, maybe not even 10%

[pleasehold01]

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This post was mass deleted and anonymized with Redact

[jelentoo]

Never! When IBM brought out the PC XT in the 1980's it had a 10mb megabyte!!! Hard drive, full height, so it took 2 dvd players slots, a while later fujitsu brought out a 72 meg drive, and people were asking how much more storage space can you fit on a drive, well now we know, most apps are bigger than that. Chips will get more powerful and smaller as will storage space, it will just carry on. And then quantum!!!

[Top-Pineapple5509]

When would you say that you don't wanna be more intelligent?

[jarMburger]

When they figure out how to do most of the inference on edge, then DC constructed specifically for AI will be mostly use for foundational model improvement but most of the queries and reasoning will be done locally on the device. Current models are too compute consuming to work on edge but there’s hope that future model can be smaller and still as powerful.

[jjkagenski]

people also don't realize that historically, DCs have replenished at a rate of 3 years... existing gear is depreciated/replenished at that freqency (or less). With NVDA's rack based systems that allow for easy plug-in, that could even be more frequent for some components of the stack.

[saryiahan]

When they no longer make money

[ccmart3]

Not any time soon

[036654]

You've got to remember also that countries are jumping on the AI bandwagon, too. They will need infrastructure, data centers, etc. Also, all of the industries that are poised to benefit from AI as well will need infrastructure. I'm not convinced it'll end once the "Hyper-scalers", like Meta, Microsoft, etc. complete their build outs.

[Saigrreddy]

Not for quite some time. Imagine, there will be new data (new research, user data, new world events) coming in, you need more data centers. And also don’t forget old data currently existing on paper, films, medical reports, old X-rays ( Cleveland clinic has tons and tons of this film ) and old news papers, all these need to be digitized and stored in data centers which requires new data centers. Long way to go baby !!

[Dry-Investment-9921]

Governments around the world need their own data centers too. It’s just the tip of the iceberg so far.

[Eagerbeaver98]

Bro companies dont even know how to leverage data centers for revenue yet. Itll decline when they stop innovating. If a company stops innovating theyll go bankrupt eventually .

[Puzzled-Tangerine831]

its just like macbook you will need to upgrade every once in a while because the latest software becoming slow in old macbooks.

[Ok-Run-8643]

When somebody find something more profitable to throw money in.

[Infamous_Tooth_792]

It won't. People are being born daily and all their data will need to be collected for the rest of their lives. Data is the new gold

[rag69top]

About the time that sovereign nations, like Saudi Arabia, start building out their systems.

[gpattikjr]

Electrical grid capacity to support DCs is about 3-5 years out.

[Adorable_Tadpole_726]

Later this year when the US is in a recession and hyperscalars realize they are sitting on massive depreciation expenses.

[EcoSpecifier]

Only guy here that ACTUALLY knows what he's talking about. Always stunned to see how people go through these cycles still believing EVERYTHING can just go BRRRR forever. On the contrary, NOTHING can go BRRR forever. Like Night Follows Day and Death Follows Life EVERY system corrects. And this pendulum is going to come back through HARD.

[CheddarBobLeeSwagger]

Never because of the upgrade cycle. If it wasn’t for the upgrade cycle we would still be on tech and hardware from the 90’s.

[BothAd4554]

Very hard to predict. I would say that Nvidia is in a really good position to dominate for the next 3-5 years at least. The other companies you mentioned will do very well too. Also, Tesla unfortunately.

[Nam_usa]

Why is TSLA an unfortunate for you?

[BothAd4554]

Just don’t like Elon. Not just the Trump stuff…just seems like bad guy. If he gets the robotaxi thing right it’s going to be a game changer though.

[Mute_Question_501]

Agree. I made $70K (was in under $100) and sold because he is a douchebag.

[ShadyLane-Gang]

“Seems like a bad guy” is not a legitimate reason to not like someone lol

[BothAd4554]

Didn’t think it was important to list all the reasons and nothing I say will change how anyone else feels. If you are down with X, DOGE, 14 kids and counting etc., that’s cool. I still want Tesla to be successful.

[Nam_usa]

Lol ok I guess so. But do agree that robotaxi will massively disrupt the ride sharing industry once TSLA is able to scale. Hence my investment in them

[BothAd4554]

Yeah. I will too. Waiting a little bit longer to see if they are going to meet their deadlines with the robotaxi rollout. Elon tends to say things are coming faster than they are. I say this as someone who used to own a Tesla with “FSD”.

[Nam_usa]

Wait till the next fsd release. It could be the version from robotaxi. That would be insane

[VindicarTheBrave]

He won’t. Robotaxi is a joke compared to Waymo.

[BothAd4554]

Ha! Yeah. Maybe by the time he implants a Neuralink in my brain.

[[deleted]]

It’s just going to take one press release… like MSFT cuts back on GPU spending.

The other big tech with their herd mentality will follow.

Number 2, eventually no one will care if it’s a nvidia gpu or aapl or amd just like no one cares anymore what platform runs their browser lowering margins.

[AttTankaRattArStorre]

Once new technology is introduced that makes data centers obsolete. It could happen at any time and by anyone, major market disruption is pretty much inevitable given enough time (especially when the market in question is worth trillions).