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Barclays estimates that data centers for AI giants like OpenAI, Meta, and Amazon could need as much as 46 gigawatts of electricity. That's about the same amount of power used by 44 million US households, or roughly a third of all homes in the country. Building out these projects could cost $2.5 trillion.

This massive expansion is already putting pressure on the power grid. Nvidia, Microsoft, and OpenAI are warning about possible grid instability caused by rapid swings in electricity demand. Some plans call for energy sources like solar plants and gas storage to be integrated directly into the data centers. OpenAI has even asked the US government to add 100 gigawatts of new power generation each year. It's still unclear how many of these projects will actually get built. According to Barclays, it's hard to draw the line between projects that are real and those that are still just speculation.

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Deutsche Telekom and Nvidia are joining forces to build the "Industrial AI Cloud" in Munich, set to become one of the largest AI computing hubs in Europe. The center will feature more than 1,000 NVIDIA DGX B200 systems and RTX PRO servers, with up to 10,000 NVIDIA Blackwell GPUs. According to Telekom, this will increase Germany's AI computing power by 50 percent. For comparison's sake, Sam Altman recently said that OpenAI will have "well over one million GPUs" online by the end of 2025. That's just OpenAI.

"Germany's strength in engineering and industry is legendary and will now be further enhanced by AI."

Jensen Huang, Nvidia CEO

The new initiative aims to give European companies the ability to build AI solutions using local data. Early partners are SAP, Polarise, and Agile Robots. The platform is intended to support applications such as factory simulation, robot training, and running large language models on site. The project, valued at over one billion euros, is privately funded and separate from the EU’s AI gigafactory funding program.

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