Exclusive: Groq investor sounds alarm on data centers

Venture capitalist Alex Davis warns investors about the overbuilding of data centers lacking confirmed tenants, predicting a financial crisis in the late 2020s. Davis, whose firm invested in AI chipmaker Groq, believes speculative data center construction poses significant risks, particularly for landlords. He anticipates hyperscalers will prioritize owning their own facilities, leaving speculative landlords vulnerable. This concern highlighting the rising debate around data centers' impact, especially on electricity costs, as the investment community begins to question the sector's growth.