AI boom drives global data centre growth despite soaring costs: Moody's

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AI boom drives global data centre growth despite soaring costs: Moody's - Business Standard

Quick Summary:

This challenge is amplified by the growing pace of innovation and uncertainty around future computing demands, making it harder to project long-term capacity needs.

However, such projects typically pose limited credit risk, as initial costs — largely covered by developers or hyperscalers — represent only a small portion of total construction expenses.

Hyperscale data centre (hyperscalers) capacity is surging, driven by the rapid development of AI models and services.