Summary
Venture capitalist Alex Davis is worried that too many data centers are being built without businesses lined up to use them. His investment firm, Disruptive, is involved in the AI industry and has invested in tech companies like Groq. Davis warns that this could lead to financial problems in the future.
Key Facts
- Venture capitalist Alex Davis is concerned about the rapid construction of data centers without guaranteed users.
- Davis sent a letter to investors highlighting these concerns.
- His firm, Disruptive, recently invested heavily in AI companies, including Groq.
- Groq signed a significant $20 billion licensing deal with Nvidia.
- Davis predicts a financing crisis for those building data centers without tenants by 2027–2028.
- Data centers affect electricity prices and are becoming a political issue.
- The investment community is now questioning the viability of current data center strategies.
