An io.net strategist warns that the AI industry may be building more data centers than needed while a significant portion of existing computing resources remain unused. David Sherman highlights that hyperscalers are increasingly financing massive infrastructure expansion through debt, raising questions about the profitability of these investments. The warning comes as AI stocks have experienced a sharp selloff, with the KOSPI index falling 7.57% and Samsung Electronics and SK Hynix shares dropping 9.5% and 11.1% respectively. Research shows that 81% of enterprises running AI workloads utilize only 50% or less of their GPU capacity, yet 63% still plan to expand their AI infrastructure. Debt financing for Asian data center projects has reached $22.3 billion this year.
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