this post was submitted on 19 Feb 2025
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Previously there was an obvious cap on the value proposition to scaling data centers, mainly, that they needed population centers nearby who would need storage or processing for thin film devices. Latency is important for these kinds of things, so they need to be near to the demands
Now they think they can make value regardless of demand from local population, through training weights for models, or running models and sending the output to population centers. So suddenly the cost of power to run the systems is what matters, and the most profitable (not the cheapest or most efficient) is fossil fuel.
They see dollar signs with the opportunity to turn power directly in to value without the need for people nearby.
It’ll be really embarrassing for them as the consumer market continues to fail to show interest in the outputs they’re making.