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re: What is the long term benefit of these data centers?

Posted on 7/22/25 at 2:22 pm to
Posted by Dire Wolf
bawcomville
Member since Sep 2008
39750 posts
Posted on 7/22/25 at 2:22 pm to
quote:

Who are they receiving their funds from?



meta, google, etc

Posted by Cosmo
glassman's guest house
Member since Oct 2003
128616 posts
Posted on 7/22/25 at 2:22 pm to
quote:

How exactly are these data centers a “for profit” enterprise?

Who are they receiving their funds from?


AWS is very profitable
Posted by Scruffy
Kansas City
Member since Jul 2011
76464 posts
Posted on 7/22/25 at 2:25 pm to
quote:

meta, google, etc
Interesting.

So, the major players pay entities to store data so that their business models can continue to function properly?

With the constant proliferation of data centers, does the price consistently increase and will there be a saturation point?

This is such a weirdly interesting business.
This post was edited on 7/22/25 at 2:26 pm
Posted by GRTiger
On a roof eating alligator pie
Member since Dec 2008
68741 posts
Posted on 7/22/25 at 2:25 pm to
quote:

How exactly are these data centers a “for profit” enterprise?


Colocation centers lease the space. Other full service DC operators also offer technology services like running and managing the infrastructure, security or network operations, security monitoring and reporting.
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 7/22/25 at 2:25 pm to
quote:

Who are they receiving their funds from?

Microsoft, Google, META, Amazon, Tesla, you name it. They all need more ai compute.

Look at the capital expendatures for Google and Amazon for this year:
quote:

Alphabet, Google's parent company, has projected a capital expenditure (CapEx) of approximately $75 billion for 2025, with a significant portion directed toward data-related infrastructure, including data centers, servers, and networking equipment to support AI and cloud initiatives. This figure represents a 43% increase over the $52.5 billion spent in 2024 and exceeds Wall Street's expectations of around $58 billion. Specifically, Alphabet's CFO, Anat Ashkenazi, noted that the majority of this CapEx will focus on technical infrastructure, with investments primarily in servers, followed by data centers and networking, to meet the growing demand for AI and cloud services.


Posted by Pettifogger
I don't really care, Margaret
Member since Feb 2012
85749 posts
Posted on 7/22/25 at 2:25 pm to
While I have no doubt there are some pretty compelling answers, I think this needs to be a question constantly posed in the US over the next couple of decades.

If being the world leader in AI rather than merely a leading country and beneficiary (every developed country will be a beneficiary) means watering down western/US culture through immigration, using huge amounts of US resources and land, etc. - we should make sure the juice is worth the squeeze.

My best guess - to some extent it is, with limits. But the problem is that the debate is being framed as "there can't be limits, you're either the leader or you're not, and thus all roadblocks have to be eliminated and no cost is too high." Which is a problem in itself.
Posted by Cosmo
glassman's guest house
Member since Oct 2003
128616 posts
Posted on 7/22/25 at 2:26 pm to
quote:

So, the major players pay entities to store data so that their business models can continue to function properly?


No. Companies pay google and amazon to store their data. It is very profitable.
Posted by CHGAR
Haile, LA
Member since Aug 2022
1211 posts
Posted on 7/22/25 at 2:26 pm to
Once these data centers shut down, there will awesome venues for indoor flea markets. This is all I got.
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 7/22/25 at 2:27 pm to
quote:

With the constant proliferation of data centers, does the price consistently increase and will there be a saturation point?

Actually, it should be getting cheaper, which means that more companies are able to afford it, and therefore, more data infrastructure is needed.

This is why I'm all in on $NBIS
Posted by Scruffy
Kansas City
Member since Jul 2011
76464 posts
Posted on 7/22/25 at 2:28 pm to
quote:

My best guess - to some extent it is, with limits. But the problem is that the debate is being framed as "there can't be limits, you're either the leader or you're not, and thus all roadblocks have to be eliminated and no cost is too high." Which is a problem in itself.
Well, the biggest issues I see on the horizon are mainly resource allocation.

If the whole goal is expansion merely for that sake, electricity and cooling availability seems to the rate limiting variable.

What do I know though?
Posted by duckblind56
South of Ellick
Member since Sep 2023
4238 posts
Posted on 7/22/25 at 2:29 pm to
Data center

quote:

What is a data center?
A data center is a physical location that stores computing machines and their related hardware equipment. It contains the computing infrastructure that IT systems require, such as servers, data storage drives, and network equipment. It is the physical facility that stores any company’s digital data.

Why are data centers important?
Every business needs computing equipment to run its web applications, offer services to customers, sell products, or run internal applications for accounts, human resources, and operations management. As the business grows and IT operations increase, the scale and amount of required equipment also increases exponentially. Equipment that is distributed across several branches and locations is hard to maintain. Instead, companies use data centers to bring their devices to a central location and manage it cost effectively. Instead of keeping it on premises, they can also use third-party data centers.

Data centers bring several benefits, such as:

Backup power supplies to manage power outages

Data replication across several machines for disaster recovery

Temperature-controlled facilities to extend the life of the equipment

Easier implementation of security measures for compliance with data laws
Posted by nicholastiger
Member since Jan 2004
53523 posts
Posted on 7/22/25 at 2:29 pm to
gonna unleash 1000's of Terminators and take back humanity
Posted by Loup
Ferriday
Member since Apr 2019
15539 posts
Posted on 7/22/25 at 2:29 pm to
quote:

worth whatever benefit it is to have and process so much data ?


if it lets AI replace realtors then it's worth it
Posted by AUstar
Member since Dec 2012
19117 posts
Posted on 7/22/25 at 2:30 pm to
I don't understand why so much water is "used." Nuclear plants use tons of water, but it is cycled into the plant for cooling, sent outside to cooling towers, then put back in the river. Why can't these data centers do the same?
Posted by Baers Foot
Louisiana Ragin' Cajuns
Member since Dec 2011
3862 posts
Posted on 7/22/25 at 2:31 pm to
Absurd tech valuations (ex. Uber being valued at $28B years ago) are parlaying into an infrastructure arms race for AI start-up valuations. These LLMs require different types of data centers than the traditional that already exist.

From a researcher standpoint, they are chasing artificial general intelligence (AGI). AKA skynet or the matrix.

From a national standpoint, if you want to maintain a competitive edge (in security and business) over all other nations, you are pouring resources and cutting red tape to win the race.

From an investor standpoint, if you want to become a multi-billionaire (or the world's first trillionaire), you are chasing an absurd tech valuation.

From a normal person standpoint, witnessing a slowing and saturated white collar job market (with productivity gains) and increasing energy prices.

Currently, society has only gained a productivity tool and toy, while introducing seemingly more skepticism/cynicism than optimism and wonder.
This post was edited on 7/22/25 at 2:31 pm
Posted by WeeWee
Member since Aug 2012
43740 posts
Posted on 7/22/25 at 2:32 pm to
quote:

What is the long term benefit of these data centers?


Artificial intelligence answering patients stupid questions instead of calling the doctor's office.
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 7/22/25 at 2:32 pm to
quote:

With the constant proliferation of data centers, does the price consistently increase and will there be a saturation point?

Do you remember the Deep Seek scare in late January? This is what it revealed:

Jevons Paradox suggests that when technological advancements increase the efficiency of a resource (in this case, computational power for AI training and inference), the demand for that resource may paradoxically increase rather than decrease, as lower costs drive greater adoption and usage. This was noted in analyses suggesting that DeepSeek’s efficiency breakthroughs could lead to skyrocketing demand for AI applications, potentially offsetting the reduced need for compute per model and sustaining or even increasing investments in AI infrastructure.

Posted by Scruffy
Kansas City
Member since Jul 2011
76464 posts
Posted on 7/22/25 at 2:34 pm to
quote:

Currently, society has only gained a productivity tool and toy, while introducing seemingly more skepticism/cynicism than optimism and wonder.
That is a good description.

The long term ideals may be warranted, but if it results in increased resource pricing for the common man, who likely cares little for the concept, is it ultimately hurting itself?
Posted by Scruffy
Kansas City
Member since Jul 2011
76464 posts
Posted on 7/22/25 at 2:35 pm to
quote:

Why can't these data centers do the same?
They likely don’t want to do that solely to offset cost.
Posted by hometownhero89
Center of the Earth
Member since Aug 2007
2041 posts
Posted on 7/22/25 at 2:35 pm to
Throughput and Availability of Web Services.

So every website and app in the country.

There are hold ups in current constructions due to power limitations of the municipalities these centers reside in. That’s the bigger problem that needs to be solved before the centers go up imo.


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