"Specifically, the processors are there, the cooling is ready to house them, but the power supply to plug in the chips is not. This leads to a curious situation in which extremely expensive Nvidia hardware is sitting in a storage facility. Since the equipment generates maximum revenue when it is the latest generation, Microsoft is missing out on income that it will never recoup."
"In the US state of Oregon, utility facility PacifiCorp, owned by Berkshire Hathaway, is reportedly unable to supply enough power for four new data centers. Incidentally, this is a dispute that has been going on since before the birth of ChatGPT. In 2021, PacifiCorp is said to have already failed to supply sufficient electricity to the locations. The incident shows that even the giants of the earth are bound to third parties."
Acute electricity shortages are limiting hyperscalers' ability to deploy AI chips, leaving expensive hardware idle because power supplies are unavailable despite processors and cooling being ready. Microsoft has large inventories of AI processors that cannot be powered, causing permanent revenue loss as equipment ages. PacifiCorp in Oregon has reportedly been unable to provide sufficient electricity for new Amazon data centers, a dispute dating back to 2021 and predating ChatGPT. Overloaded regional power grids are prompting hyperscalers to assume greater responsibility for physical infrastructure and to pursue alternative power sources. SMRs (small modular nuclear reactors) are emerging as one such option.
Read at Techzine Global
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