data centres5 articles
Chip Tariffs Could Be the Most Self-Defeating Thing Trump Does to AI
The Trump administration is considering sweeping semiconductor tariffs that could extend beyond chips to include downstream products like servers, gaming consoles, and consumer devices, alarming the tech industry at a critical moment in AI infrastructure development. Industry groups warn the tariffs could cost the US $90 billion annually in GDP, delay or cancel roughly 20% of planned data centre projects, and ultimately undermine the very AI dominance Trump claims to be pursuing — since domestic chip manufacturing capacity won't be ready in time to replace imports. Despite intensive lobbying efforts, talks between the tech industry and Trump officials have reportedly trended in a negative direction, with Commerce Secretary Howard Lutnick pushing for broad tariff application tied to companies pledging domestic production commitments.
Australia Tells AI Companies to Generate More Power Than They Use and Pay for Content They Train On
Australian Prime Minister Anthony Albanese has announced a landmark AI policy requiring large datacenter builders to be net energy generators rather than consumers, and to fund associated water and grid infrastructure. The policy also mandates that AI companies reach agreements with local creators before using their content, with Albanese describing unauthorised use of Australian creative works as "theft." He framed the regulations as a proactive approach to prevent big tech from gaining outsized power, drawing comparisons to the delayed regulation of social media.
SoftBank Bets 75 Billion Euros on French AI Data Centres
SoftBank has announced plans to invest up to 75 billion euros in AI data centers across France, with an initial phase of 45 billion euros targeting 3.1 gigawatts of capacity in the Hauts-de-France region by 2031. The project, announced at President Macron's Choose France summit, includes partnerships with Schneider Electric and French startup Sesterce, and is expected to create thousands of jobs. The investment is part of SoftBank's broader global AI infrastructure push, though many of its international projects, including efforts in the US, UK, and Abu Dhabi, have yet to fully materialise.
SpaceX Is Burning $2.8 Billion on Gas Turbines While Regulators Circle Its AI Data Centres
SpaceX has committed over $2.8 billion to purchase gas turbines to power AI data centers for its xAI unit, which operates the Colossus 1 and Colossus 2 facilities in Tennessee and Mississippi. The investment comes despite public backlash, a lawsuit, and regulatory scrutiny over environmental concerns, including allegations that the company operated turbines without proper air permits. The disclosures emerged from SpaceX's IPO prospectus, as the company prepares to list on the Nasdaq stock exchange in the coming weeks.
Nvidia Posts Record Quarter, Investors Shrug
Nvidia reported record first-quarter results, with revenue up 85% year-on-year to $81.6bn and net income more than tripling to $58.3bn, driven by surging demand for AI infrastructure chips. Despite beating expectations, shares fell 1.6% in after-hours trading, as analysts noted investors have grown accustomed to Nvidia's exceptional performance and are seeking even higher growth. Concerns about increasing competition, as major clients develop their own chips, also weighed on investor sentiment.