Categories: Business

In China, tons of datacenters built for AI are unused

< IMG LOADING = "Lazy" SRSC = "/Sites/Default/Files/Styles/Medium/2022-08/Datacenter%20-%20UNSPLASH.JPG ? Itok = 5512t joined" Width = "640" Height = "359" Alt = "A Data Center" Class = "Lazyload Img-Fluid Image-Style-Max-1300x1300" SRC = "/Sites/Default/Files/Styles/Max_1300x1300/Public/2022-08/Datacenter%20-%20-%20Unsplash.jpg ? iTok = S9nxnzCl"/ Unsplash < P >< Strong > hundreds of brand new data centers, built in an emergency to capture the Wave of AI in China, are now abandoned. After the euphoria of 2023, optimism gives way to a realistic observation of overproduction and overinvestment. The government and the companies are faced with a saturated market.

< P > Last year, China lived a frenzy of building data centers to support the rise of IA. But today, as reported on < EM > Mit Technology Review , thousands of GPUs bought at gold prices are piled up in deserted installations. Xiao Li, former entrepreneur, says: “It seems that everyone is selling, but no one buys.” In 2024, almost 80 % of recent facilities would already be underused. A disproportionate optimism, fueled by a crazy race to build the infrastructure of tomorrow, but few companies have really looked at this new market. < P > This mess results from a precipitated and misused implementation. As China rushed to make AI a national priority, many local companies and governments, without solid experience in the field, have embarked on the adventure, sometimes with a short -term vision. “Their data centers were constantly built, without the stability required to support high -growth demand,” analyzes Jimmy Goodrich, technology advisor at the Rand Corporation. Excessive construction has masked reality: a need for specialized centers and close to the great technological hubs. < P >And then, the irreparable occurred: the market was drowned under an excess offer. While technologies like Deepseek have redefined infrastructure needs, the demand for calculation power has dropped, as is the GPU rental price. Consequently, actors like Fang Cunbao, a project manager, saw their dreams break up: “At the end of 2024, no one was engaged in this path for direct profits. Everything has become a question of benefiting from government aid.” < P > despite everything, China does not intend to abandon its ambition. The government continues to invest massively in AI, supporting long -term projects which are added to assets in difficulty. But the lesson is clear: quantity does not always make quality.

< P >< Strong > The article you liked ? It mobilized our editorial staff which only lives from your gifts. < Br > Information has a cost, especially since competition from subsidized writing requires additional rigor and professionalism.

< P > With your support, France-Soir will continue to offer its articles for free & nbsp; we think that everyone must have access to free and independent information to forge their own opinion. < P > You are the sine qua non condition for our existence, support us for France-Soir to remain the French media which makes the most legitimate express.
Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

Share
Published by
Natasha Kumar

Recent Posts

The iPhone 17 Pro smartphone may have an updated camera: what is known

< img src = "/uploads/blogs/AB/01/ib-freeiu4d_237c6fc9.jpg" Alt = "in the iPhone 17 PRO may appear updated…

54 minutes ago

How can you keep your phone charge as long as possible: simple tricks to save energy

< img src = "/uploads/blogs/29/96/ib-frfuntg8t_7c6fc931.jpg" Alt = "How to save your phone for as long…

54 minutes ago

In the US will check the role of Pentagon head in the incident with the Signal Messenger

< IMG SRC = "/Uploads/Blogs/DF/D0/IB-1inuoe2r7_9bff7.jpg" Alt = "in the US will check the role of…

54 minutes ago

The police detained the Administrator of the Telegram-channel for the sale of drugs

< img src = "/uploads/blogs/49/ff/ib-1invrdhdhm_08c74329.jpg" Alt = "Police detained the administrator of the Telegram-channel for…

54 minutes ago

A resident of Kropyvnytsky is suspected of informing the Russian Federation about the placement of strategic objects in Kirovograd region

< IMG SRC = "/Uploads/Blogs/F4/97/IB-FRFG83GPE_7563c86F.jpg" Alt = "Kropyvnytskyi resident is suspected of informing the Russian…

3 hours ago

In Kharkiv, a man was condemned for the spread of the Armed Forces and the glorification of the Russian military

< IMG SRC = "/Uploads/Blogs/1C/96/IB-FRFJLACST_1CBF6D01.jpg" Alt = "in Ukraine condemned a man for the dissemination…

3 hours ago