21–30 of 60 posts
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Sovereignty, the days of peaceful geopoltics are behind us.
That's a public good that occurs if the government puts their thumb on the scale with subsidies or regulations, because otherwise the market can't get there itself (example: TSMC building plants in US only because of government incentive). But the Nscale case looks like private investors deciding this is the most profitable place to build it on the margin, which is anomalous.
My observation has been that the areas where data centers makes the most sense (colder climate, cheap energy, cheap real-estate, trustworthy countries) to build, are also areas where resistance against data centers has started to gain momentum. The spike in energy prices alone will make building these centers an uphill battle.
I don't get the economics behind building AI DCs in the UK instead of a middle income country near the equator where there's plentiful solar or fossil fuels. Labor and land is expensive, energy is scarce and expensive, and colocation is not that valuable because latency is dominated by compute instead of transmission. But there must be a good reason I am missing.
Latency?
Chances of this startup pulling a Theranos are? I mean data center construction is something that couple of non startup companies do and do it well. What is the problem that they solve? The article is quite light on what they actually do.
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I dont know what world you/I are living in. I do ask claude to enumerate/explain concepts i am not familiar with. I never approached the free tier limit (is there one?). At work, we have a webpage which ia basically a chat to different models, sometimes i use it Would I be paying 20€ to ask those questions? I dunno, i dont feel any particular need. Would I be paying 200€?! Are you insane hell no
People aren't paying $200 to chat, they're paying to have ClaudeCode or Cowork or Claude for Chrome do the work instead.
At some point the price will rise. But the value has to have risen for existing buyers to be ok with that - but can they perceive the value? Hmmm difficult to tell. Benchmarks are not an objective way to measure that.
In the long run google is most likely to acquire a serious cost advantage given their level of vertical integration.
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I think it’s lagging indicator. There were signs of saturation in the end of 2025. From 2025 to March 2026 average developer ai spent gone from $20/mo to at least $200. In my company it’s $1000-1500/mo to anthropic only. In many cases this 20x+ increase over 3 mo. This is going in other industries too. Claude cowork is just an example and beginning of the trend. Show me any product that / company that charge you 20x…
Eh? Is the average developer paying 200$ a month? I mean, I imagine some top% vibe coding bros paying 200$. I would require some serious evidence that the average developer pays for it. I certainly wouldn't. It's moderately useful, but not 200$/mo useful.
This is all starting to smell like financial engineering games. Traditionally nobody in their right mind would give a startup billions to build data centers. For a long list of reasons, that’s kinda nuts. However what it does allow all these companies investing to do is fund significant capital expenditure but hide it on their balance sheet. They all know if they funded capex directly it would create a deprecation st…
"Starting to"? :)
I don't get the economics behind building AI DCs in the UK instead of a middle income country near the equator where there's plentiful solar or fossil fuels. Labor and land is expensive, energy is scarce and expensive, and colocation is not that valuable because latency is dominated by compute instead of transmission. But there must be a good reason I am missing.
I mean, there's a reason Luleå is a popular datacenter spot: access to hydro & wind- but also "free cooling"; datacenters create a lot of heat and having a cold environment makes it easier to maintain ambient temperatures that are sustainable with lower energy consumption.
Additionally, people tend to prefer their servers are in geopolitically stable countries that are less likely to be bombed or undergo civil war (and the US likes to ensure civil war in countries that have a lot of oil) - and you want your datacenters to avoid any environmental hazards like earthquakes.
I can't imagine preferring the equator for datacenters.
This is all starting to smell like financial engineering games. Traditionally nobody in their right mind would give a startup billions to build data centers. For a long list of reasons, that’s kinda nuts. However what it does allow all these companies investing to do is fund significant capital expenditure but hide it on their balance sheet. They all know if they funded capex directly it would create a deprecation st…