Silicon Valley’s multitrillion-dollar AI race has created an odd predicament: it is all horse and not enough cart. While demand for compute power has arrived in spades, the building of the factories to house it is hitting a wall.
On Wednesday NextDC slashed its full-year earnings guidance by more than a third following delays connecting its Melbourne data centre to power networks. The pioneering Australian data centre operator has flagged it could even have to sell development sites to help shore up the balance sheet, triggering a 42 per cent rout in its shares.
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