Was 2025 the Year of the AI Datacenter?

TLDR: 2025 saw a massive increase in AI datacenter projects, with Big Tech spending over $400 billion. However, this boom comes with significant societal and environmental costs, including higher electricity bills, environmental damage, and growing public opposition.

Summary: This article presents a critical perspective on the AI datacenter boom of 2025. While Big Tech and cloud hyperscalers have invested hundreds of billions of dollars in AI infrastructure, the author questions the net benefit to society. The piece argues that the rise of AI chatbots like ChatGPT is leading to reduced reading time, less human connection, and a devaluation of education.

For architects and teams, this article serves as a crucial reminder of the broader context in which we build. The technical decisions we make have real-world consequences that extend beyond our immediate projects. The author points to the significant environmental impact of datacenters, including massive energy and water consumption, and the resulting strain on power grids and local communities. There is a growing public backlash against these projects, with protests and project cancellations on the rise. The author is avoiding the discussion of the potential for AI to solve some of the world's most pressing problems, and is focusing only on the negative aspects.

Key takeaways:

Big Tech's CapEx on AI infrastructure is estimated to be over $400 billion in 2025.
The author argues that the societal costs of AI, such as reduced reading and human connection, may outweigh the benefits.
Datacenters are causing significant environmental strain, leading to higher electricity bills and public opposition.
The SPEED Act, which would streamline the approval process for datacenters, is criticized as being against the public interest.

Link: Was 2025 the year of the Datacenter?