AI race hinges on power, infrastructure over chips: Morgan Stanley, ETDatacenters

The global race to expand artificial intelligence (AI) capabilities could increasingly be determined by access to electricity, financing, and data-centre infrastructure, rather than just the ability to acquire advanced chips, according to a Morgan Stanley research report.The report, titled “What Does the Power Shortfall Mean for Semis?”, estimates that US data-centre developers could face a 32-gigawatt (GW) power shortfall through 2028. This represents approximately 34 per cent of projected power requirements, even after accounting for additional generation solutions.Morgan Stanley said that access to electricity increasingly favours large companies with strong financial backing and predictable revenues.