Posted on 12/19/2025 10:03:21 AM PST by SeekAndFind
Global data centers dealmaking surged to hit another record high this year, driven by a rush to build out the infrastructure required for energy-intensive AI workloads.
That surge came even as investors grew increasingly wary of inflated artificial intelligence valuations and the financing underpinning the rapid expansion of data centers. Global stocks sold off in November as worries of an AI-fueled bubble persisted.
But S&P Global reported that more than $61 billion has flowed into the data center market this year, up slightly from $60.8 billion last year, amid what it called a “global construction frenzy.”
A surge in debt financing contributed to the record high as hyperscalers increasingly tap private equity markets rather than funding the expensive infrastructure themselves.
That trend has sparked concerns from some investors as they question the value of the advanced tech that data centers house.
Shares of cloud company Oracle fell 5% on Wednesday following a report that Blue Owl Capital was pulling out of a deal to back a $10 billion data center in Michigan. Oracle has denied the report, but Broadcom, Nvidia and Advanced Micro Devices retreated after it was published. The Nasdaq Composite lost 1.81% in its worst day in nearly a month.
Iuri Struta, TMT analyst at S&P Global Market Intelligence, said his team expects market concerns around AI and Oracle to be temporary and unlikely to have a “massive impact” on data center buildout and M&A in the near future.
“The competitive dynamic among frontier AI model providers, like OpenAI, Alphabet and Anthropic, is changing quickly, and this can have an impact on investor sentiment in public markets. But overall, we see demand for AI applications continuing to grow strongly in 2026.”
Despite the recent pullback in AI stocks, many analysts remain bullish on the sector.
(Excerpt) Read more at cnbc.com ...
I’m thinking that AI is both real, but at the same time overhyped.
These data centers are nothing but massive black holes for valuable space and water.
The amount of energy they suck up is mind boggling,
The reason why Gates and other tech moguls have suddenly changed their mind on climate change and the environment... They need lots and lots of electricity and lots and lots of water to keep these AI data centers running.
The kind of electricity that can only be provided in vast amounts by gas, oil and coal burning plants.
BTW... I guess this answers the question as to why the Chinese are building a coal plant every week. They need that electricity to generate ‘their’ version of AI.
THEY CAN CREATE THE POWER———
HOW CAN THEY CREATE THE WATER????
They will take it from places replete with it such as Michigan.
Seems like there could be a very good opportunity for energy recovery systems generating heating water from all that server equipment that has to be cooled.
Despite the huge water resources needed to operate a data center, big tech continues to build these data center in the desert southwest where water resources are already overstressed. Follow the money.
Ai has real value, but it depends on who is controlling it. Better us than the China in the lead on it. Whether we like it or not, American based tech companies need to focus hard on it and spend everything they can to lead. Otherwise, we will definitely drown in the chaos AI could be used to create and sink even faster than we already are.
Water gets recycled.
Water gets recycled.
That’s why I bought FRMI at the bottom ($8.16).
It’s going to triple or quad.
Has a chance at a 10 bagger.
Rick Perry, Texas, Cheap Power.
Sweet.
They don’t need that much water.
What they use it for, it can be easily recycled...if necessary.
These data center complexes like Matador in Amarillo are the center of the capital universe right now.
When the AI hysteria collapses these data centers can be used to warm the homeless.
Agree
Wasn’t Musk going to build small power plants at his?
You’re taking a substantial risk by buying FRMI.
It was recently revealed that a prospective anchor tenant for Fermi’s Project Matador (the company’s Advanced Energy and Intelligence Campus at Texas Tech University) terminated an agreement that would have advanced $150 million to help fund construction.
The tenant’s cancelation news and severe market reaction have prompted national shareholders rights firm Hagens Berman to open an investigation into whether Fermi may have previously misled investors about the strength of the First Tenant agreement.
I hope this gets settled and you didn’t put too much money into FRMI.
the computers will be cooled by a anti-freeze type gel that controls the temperature of the systems. Water will not be required. However, these systems will make new cancer-causing agents, the likes of which we have never seen before. Just my 2cents.
The fundamentals are there, and another $150million easy to come by in this business.
Several investors will reach out to them, they don’t have to go begging.
It sickens me that Trump supports these monstrosities. They are destructive to humanity.
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