DATA CENTRE COSTS
Wells Fargo upgrades US AI infrastructure stocks to neutral after chip rout
Wells Fargo upgraded its outlook on US AI infrastructure stocks to neutral from negative, citing improved valuations after a steep semiconductor sell-off. However, it warned that slowing AI investment and rising depreciation costs could pressure earnings in 2028.
Chipmakers warn AI demand is creating bottlenecks in automotive supply chain
Nexperia says it is heavily oversubscribed as chipmakers redirect capacity towards higher-margin AI data-centre products, creating shortages of mature semiconductors used in vehicles and industrial equipment. Industry executives warn that the AI investment boom is worsening bottlenecks across automotive and industrial supply chains.
AI stocks: Are the days of easy money over? Aswath Damodaran warns investors of a new market reality ahead of Anthropic IPO
NYU professor Aswath Damodaran warns that broad-based gains from AI stocks may be fading as investors become more selective. He highlights diverging business models, rising infrastructure costs, uncertain monetisation and valuation risks, urging greater investment discipline.
Tech investor SoftBank Group logs $7 bn quarterly net loss
The company's profits routinely see wild fluctuations linked to the volatile value of global technology stocks and its changing portfolio of investments and acquisitions.
A blue brake on Trump's red agenda: Tariffs, spending and debt face a 'Democratic' reckoning in the US
Democratic control of Congress from January 2027 could constrain President Donald Trump's legislative agenda, increase scrutiny of his tariff policies and complicate fiscal decisions, Fitch's BMI said. While Trump retains executive powers over trade and immigration, prolonged funding negotiations and a potential debt-limit confrontation could raise financial market volatility.
Quantum could solve AI energy drain, says tech founder
Quantum computers could curb the vast energy demands of artificial intelligence data centres with their ability to run complex calculations, one of the tech's pioneers told AFP. Australian startup Diraq is conducting the first field test worldwide putting a small quantum computer based on a silicon chip in a commercial data centre in Sydney. Diraq's computer installed in Equinix's Sydney data centre has eight quantum bits, or qubits, on a silicon chip.
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Growing demand, demographics, digital agenda & energy security are long-term and secular tailwinds for India: Macquarie’s Ed Northam
Head of green Investments for the Australia’s largest asset manager said the firm is looking to reboot its India operations. While renewables will remain the biggest focus, industrial energy transition and E-mobility will be other key areas, he said. Since 2005, Green Investments group has deployed over $21 billion across 94 investments worldwide.
Norway reins in data centre industry amid AI boom
Norway produces more power than it consumes and is a net exporter, but recent projections show that demand from new data centres could lead to an energy deficit and rising electricity prices in the coming years.
India's investment outlook strengthens as credit, exports rebound; inflation relief likely: HSBC
India's investment outlook is improving as credit growth and corporate revenue increase, pointing towards stronger private capital spending. The report from HSBC highlights that funds to the commercial sector have risen significantly compared to previous years. Additionally, rising services exports have helped maintain a steady current account deficit in the economy. However, challenges such as weak rural demand and inflation continue to impact households and corporate margins.
When wars and AI cast a shadow, India has pressed a power reset
India’s renewable energy expansion is reshaping its energy security, cutting dependence on imported coal and natural gas as wars, oil supply disruptions and AI-driven electricity demand put pressure on power markets. An International Energy Agency report says clean energy saved India over $100 billion in fuel imports between 2011 and 2025, with cumulative savings potentially reaching $240 billion by 2030.
SoftBank to face scrutiny of AI strategy at second-quarter earnings after selloff
SoftBank Group is on the brink of unveiling its quarterly earnings, navigating a turbulent landscape marked by challenges in the artificial intelligence sector and looming regulatory issues. The company's heavy investments in AI, alongside setbacks like a thwarted acquisition, have sparked skepticism among investors. Predictions indicate earnings could be highly unpredictable, with net profit estimates varying significantly, highlighting ongoing financial instability.
AI power rush sends data centres hunting for used turbines and jet engines
Utilities and developers are increasingly looking for second-hand gas turbines as new equipment takes longer to produce. Orders for gas turbines are significantly outpacing manufacturing capacity and are projected to reach 129 gigawatts. The AI data centre boom is driving demand and leading to higher prices for gas turbine equipment.
India's ChatGPT boom faces a reality check as free AI use meets rising costs
India has emerged as ChatGPT's largest market, driven by its vast digitally connected population and widespread access to free AI services. However, as AI infrastructure expands and computing and energy costs rise, companies face the challenge of recovering investments. Convincing price-sensitive Indian users to pay for AI remains difficult.
NSE looks beyond transaction fees to drive growth
NSE reported a sequential decline in revenue and profit in the September quarter from previous results. The drop resulted from a 16% fall in transaction charges and reduced trading activity. NSE plans to enhance market activity through amendments to its Closing Auction Session framework expected in December. Additionally, the exchange is diversifying its offerings into commodity derivatives and digital gold products.
Anthropic wants to create new billionaires through its IPO, but American voters are growing tired of Big Tech's wealth explosion
Anthropic is preparing for a significant IPO amid growing public resistance to AI-related infrastructure projects. Investors are discussing a valuation between $1 trillion and $1.5 trillion for the Nasdaq listing. Communities express concerns over environmental impacts and rising electricity costs linked to data centres. Public sentiment is shifting against technology companies, raising questions about economic benefits versus local costs.
Bad AI cholesterol vs good AI cholesterol
The Magnificent 7 of Big Tech has recently experienced a staggering drop, losing over $1 trillion in collective market value. This decline is fueled by apprehensions regarding spending on artificial intelligence and rampant inflation. As challenges loom for AI investments—particularly in legal and borrowing contexts—investors must now navigate a landscape where distinguishing between thriving and failing AI projects is crucial.
Delhi-NCR among APAC's top office markets as prime rents rise 5.4%; occupancy costs rank seventh
Delhi-NCR has emerged as a key player in the Asia-Pacific office market, marked by a notable 5.4% rise in prime office rents yearly by Q3 2026. This uptick showcases persistent demand in the region, which ranks seventh in occupancy costs among major markets. While overall office leasing has declined, the focus on enhancing workplace quality continues to lead rental rates upward, underscoring its significance for boosting productivity.
Wall Street stocks rally after heavy AI-related selloff
Wall Street's trading session presented a mixed scenario as the S&P 500 and Nasdaq climbed, contrasting with a modest dip in the Dow. Investor apprehensions regarding impending regulations for the AI sector, especially after recent Democratic electoral successes, led to increased market volatility. Meanwhile, key global markets witnessed declines, particularly in Europe and Asia, overshadowing advancements in certain tech stocks amid a generally bearish sentiment.
SoftBank credit risk jumps to 4-year high as AI fears roil market
The cost of insuring against a default for tech investor SoftBank Group jumped to its highest in four years on Friday as worries about AI profitability roiled the world's financial markets.
Was Michael Burry right about the AI bubble? Wall Street loses $2 trillion as AI and chip stocks plunge: Why are Tesla, Palantir, AMD, Broadcom and SanDisk crashing?
Michael Burry's warning about an AI bubble is back in focus as Wall Street loses more than $2 trillion in market value. On Thursday, November 5, AMD shares plunged around 12%, SanDisk fell 14%, Micron dropped 10%, while Nvidia lost nearly 7%. Tesla and Palantir also fell 9% and 8%, respectively. The sell-off spread across chipmakers, memory companies and AI infrastructure stocks. The Dow fell 2.36%, the S&P 500 dropped 3.11%, and the Nasdaq sank 4.20%, as investors questioned whether massive AI investments can deliver enough returns.
Trump-linked crypto assets slip up to 16%, AI data centre stocks slide after Democrats' US midterm win
Trump-linked cryptocurrencies tumbled up to 16%, while shares of Bitcoin miners transitioning into AI data centre businesses slumped as Democrats' strong midterm performance rattled investor sentiment. Concerns over tighter regulations, potential construction delays in Texas and rising financing costs weighed on companies betting on the AI infrastructure boom.
Democratic victories threaten to slow US data-centre expansion, ease bond yields: ICICI Bank report
The US midterm election results have put 141 GW of planned data-centre capacity at risk of tighter policy restrictions, potentially slowing AI infrastructure investments, while supporting US Treasury bonds, according to an ICICI Bank report.
Entry norms for GPU bidders eased, but price pain remains
Bidders will not be required to submit a financial bid or commit to service level terms at the first stage, which will be for technical qualification. This is a significant change from the previous IndiaAI process. The minimum technical qualifying score has been reduced to 60 out of 100, compared with 75 under the IndiaAI framework.
Midterm results may slow US visa curbs, but no quick relief likely for IT
The opposition party’s takeover of both chambers of US Congress is expected to bring greater scrutiny of the administration’s policy decisions, potentially slowing further restrictions, industry experts told ET. However, any improvement in sentiment is unlikely to translate quickly into higher hiring or technology spending.
Over half of street vendors may cut UPI acceptance if 0.4% MDR is introduced: ISB study
More than 67% of street vendors in India currently accept UPI payments for transactions. A proposed 0.4% merchant discount rate could lead to reduced acceptance among vendors. Concerns arise particularly for vendor-supplier transactions, as many vendors make payments above ₹2,000. A significant portion of vendors faced additional charges from suppliers and might pass costs onto customers.
Why did the Dow Jones jump 1,250 points today after Democrats won Congress while Tesla, SpaceX and AI stocks struggled? Will a Democratic Congress slow the AI boom?
Wall Street took the election result well on Wednesday, yet some names missed the rally. Democrats won Congress, and the Dow climbed 1,245 points, or 2.40% by 10:44 am ET. The S&P 500 rose 1.52% and the Nasdaq gained 1.82%. But Tesla, SpaceX and data centre stocks fell, as investors worry tighter rules may slow the AI boom.
Texas and Georgia host the AI data-centre boom and both swung blue; AI cloud stocks fell and solar jumped up to 10% as the fight over who pays for power begins
Data centre stocks fall after Democrats win Congress, but solar shares jump 10% as US election results shake up energy outlook. Texas and Georgia are two important locations for the industry. Both elected Democratic candidates in the midterm elections. Democrats also made gains in traditionally Republican areas, including Kansas.
India's data centre capacity set for 5x surge by 2030
By March 2030, India’s data centre capacity is projected to soar to 7.5 gigawatts, fueled by escalating demand from global hyperscalers and the emergence of generative artificial intelligence. However, challenges such as power infrastructure and project execution timing loom large. To mitigate these risks, pre-commitments and long-term contracts are essential, alongside the industry's flexibility to adapt to changing computing needs, which will dictate its future profitability.
Why are Marvell and Lumentum share prices down over $115 billion acquisition?
Marvell and Lumentum shares have dropped after Marvell announced that it will be acquiring Lumentum in a $115 billion all stock deal. Marvell will be able to expand its AI data centre and optical networking technologies after the acquisition. The acquisition will help Marvell compete with Broadcom successfully. The investors are now looking at the cost of the acquisition, debt, dilution and integration risks.
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