As nations race to harness artificial intelligence, data centers and advanced chips have become strategic infrastructure—akin to ports, railways, and energy grids.
Concentration of compute capacity and chip fabrication raises concerns about bottlenecks, energy demand, and national security.
Governments are courting hyperscalers with tax incentives and streamlined permits, while simultaneously scrutinizing foreign investment and export controls. Regions with reliable power, fiber connectivity, and favorable climate (for cooling) are attracting multi-billion-dollar campuses. The upside: construction jobs, tax revenue, and a magnet for startups. The challenge: grid strain, water use, and land-use conflicts.
For businesses, the strategic question is dependency. A diverse cloud strategy—multi-region, multi-provider—reduces concentration risk. For policymakers, balancing growth with resiliency means investing in transmission lines, clean generation, and cybersecurity. AI’s promise is vast, but realizing it safely requires infrastructure choices that are as thoughtful as the models themselves.