Moody’s Ratings identifies risks around massive build-out of data centers to power AI

Two new reports from Moody’s Ratings examine the “surging” demand for data center capacity fueled by artificial intelligence and the associated “huge capital outlays” by the biggest tech companies, noting that even these deep-pocketed “hyperscalers” face financial as well as regulatory risks around the investments.

“Vast computational power needed to drive advances in artificial intelligence is creating a surge in demand for data centers to process and store the data. The leading cloud services providers or ‘hyperscalers’ like Amazon, Google,...