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

Scammers on TikTok social network – through which video can be left out of money

< IMG SRC = "/Uploads/Blogs/C4/2A/IB-FS5L9GPPL_B2715237.jpg" Alt = "fraudsters in Tiktok-through which video can be left…

1 hour ago

Picture in ultra -high quality – x will allow users to download video in 4K

< IMG SRC = "/Uploads/Blogs/8b/46/IB-FS61EM0LV_4F119C7F.jpg" Alt = "Picture in Extra-High Quality-X will allow users to…

1 hour ago

Playstation 6 and new Xbox release are revealed

< IMG SRC = "/Uploads/Blogs/4d/EA/IB-FS614UVEC_D695E0.jpg" Alt = "revealed the potential output date Playstation 6 and…

3 hours ago

6 HIMARS starting installations arrived in Estonia

< IMG SRC = "/Uploads/Blogs/FA/FA/IB-FS658SPKC_87C632A7.jpg" Alt = "Six Himars Starting Installations Arrived in Estonia"/> ~…

3 hours ago

Poland can be the purpose of cyberattack and misinformation by Russia: what is known

< IMG SRC = "/Uploads/Blogs/A7/69/IB-FS5S298un_6D7E040F.jpg" Alt = "Poland can be the goal of cyberattack and…

4 hours ago

Wikipedia will use si: will he replace people

< img src = "/uploads/blogs/fc/23/ib-FS5rpnf6s_7bc9dcde.jpg" Alt = "Wikipedia will use si: will it replace people"/>…

4 hours ago