By Marco Quiroz-Gutierrez
Publication Date: 2025-12-03 17:41:00
While giant tech companies like Google and Amazon tout the billions they’re pouring into AI infrastructure, IBM’s CEO doubts their bets will pay off like they think.
Arvind Krishna, who has been at the helm of the legacy tech company since 2020, said even a simple calculation reveals there is “no way” tech companies’ massive data center investments make sense. This is in part because data centers require huge amounts of energy and investment, Krishna said on the Decoder podcast.
Goldman Sachs estimated earlier this year that the total power usage by the global data center market stood at around 55 gigawatts, of which only a fraction (14%) is dedicated to AI. As demand for AI grows, the power required by the data center market could jump to 84 gigawatts by 2027, according to Goldman Sachs.
Yet building out a data center that uses merely one gigawatt costs a fortune—an estimated $80 billion in today’s dollars, according to Krishna. If a single company…
