By TOI Tech Desk
Publication Date: 2025-12-06 11:03:00
IBM CEO Arvind Krishna has note of caution as the all the big tech companies such as Google, Microsoft and others are pouring billions into building AI infrastructure. As reported by Fortune, speaking at the Decoder podcast earlier this month, Krishan argued that the huge investments made in building massive data centres is unlikely to deliver the returns the tech giants are expecting. Krishna pointed out that even a simple calculation shows the math doesn’t add up. He highlighted that building a data center capable of consuming just one gigawatt of power costs around $80 billion. If a single company commits to around 20 to 30 gigawatts, would mean capital expenditure of around $1.5 trillion which roughly equates to the current market cap of Tesla.So, collectively, the hyperscalers could add up to 100 gigawatts of capacity, but Krishna estimated that would require $8 trillion in investment. “It’s my view that there’s no way you’re going to get a return on that, because…
