IBM Vice Chairman Gary Cohn on whether the U.S. is overbuilding data centers

Summary

IBM Vice Chairman Gary Cohn discusses the U.S. data center buildout, arguing that near-term capacity is not overbuilt but projects coming online in 2028-2030 are at risk due to expected efficiency gains from AI and quantum computing. He explains that technological advancements will reduce the compute power needed per task, potentially leading to oversupply. The segment is part of the Invest in America Forum, which also featured Arm CEO Rene Haas and AT&T CEO John Stankey.

• Gary Cohn provides a nuanced view on data center overbuilding.
• He states data centers coming online today or next year are not overbuilt.
• He believes data centers scheduled for 2028-2030 are overbuilt.
• The primary reason is that AI and quantum computing will dramatically improve efficiency.
• AI can make data centers run more efficiently by learning and sharing progress.
• Quantum computing by 2029-2030 will be exponentially faster and solve problems differently.
• These advancements may reduce the need for as much compute infrastructure in the future.
• The discussion is framed around investment implications for the data center sector.