AMD Shares Slip 6.9% on Forecast of 165% Surge in Data Center Power Demand
AMD•AMD shares slid 6.9% after projections showed global data center power demand rising 165% by 2030 and utilities warned of up to four-year grid capacity waits. It noted Google’s $1 billion Indiana data center reversal over approvals and underscored the vital role of reliable, low-cost electricity for AI-driven chipmakers.
1. Data Center Power Demand Surge
Global data center power demand is forecast to rise 165% by 2030, intensifying competition for grid capacity as utilities cite two- to four-year wait times for new connections. This bottleneck risks delaying AI and cloud infrastructure expansions for chipmakers reliant on high-performance computing.
2. AMD Stock Reaction
Shares of AMD fell 6.9% following the power constraint outlook, underperforming major indexes. The decline reflects investor concerns that power shortages could hamper the company’s growing data center GPU deployments.
3. Strategic Importance of Low-Cost Electricity
The report highlighted Google’s shelved $1 billion Indiana data center project over planning approvals, illustrating the challenges in securing reliable, affordable power. Chipmakers and hyperscalers may seek partnerships with firms that control long-term energy supplies to mitigate these risks.
