Elon Musk has predicted that more than 200 neoclouds could face bankruptcy and consolidation as loans and investments become more expensive. Companies that build data centers with debt and rent out computing power are particularly vulnerable if demand for artificial intelligence slows. Gartner forecasts that 80% of independent neoclouds will cease independent operations by 2030, while Bernstein estimates that only 35% of the data center capacity announced in North America will actually be built. Nvidia has invested more than $7 billion in cloud providers and could be exposed to as much as $164.5 billion in guarantees and commitments tied to these infrastructure projects. The shakeout is expected to benefit operators with real capacity, customers and operational data centers without ending demand for artificial intelligence computing power.
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