Azeem Azhar

But there is a real constraint, and that real constraint is electricity.

It's the physical limitations of this software and whether existing systems can absorb the demands being put on them.

Now, a data center can be built in a couple of years, maybe a bit faster if you're Elon Musk.

But getting that grid connection, as we know, can take several years.

So you can have a data center, but you can't power it up.

And Satya Nadella a few weeks ago said that they had that very situation.

So there is a scramble for getting energy into data centers.

I've spoken to

data center developers in the last few weeks.

And what I'm hearing are really quite staggering stories, multi-billion dollar offtake deals for electricity, not just in the US, but in Europe as well.

The demand is really high that the hyperscalers are somewhat price insensitive in order to be able to build capacity to meet that demand.

This isn't just about large language models.

This is actually also about the shift

of businesses, processes into computation, into digital processes.

It's also about the growth of digital services.

You know, earlier this year, AWS, which is Amazon's hyperscaler business, they put in tens of billions of dollars, nearly $100 billion in CapEx,

this year, had to turn down business from Fortnite, a multi-million dollar contract.

I didn't even know Fortnite was still a thing.

It's that game where people fly around and wear skins.

They had to turn down that deal because they didn't have the capacity.