Technology
Morgan Stanley flags 32 GW US data-centre power gap
Livemint··6h ago
Morgan Stanley estimated US data-centre developers face a 32-gigawatt power shortfall through 2028, about 34 percent of projected need. The report said Nvidia confirmed more semiconductors are being built than sites can power. Large tech and cloud firms could take about 94 percent of 2026 capacity additions. The gap may widen to 68 GW by 2029.
Prism
What It Means For You
- Chip supply alone may not deliver AI capacity without electricity and land.
- Smaller developers may wait longer for power than well-funded hyperscalers.
- Some US hyperscaler demand could shift toward Asian markets, including India.
What's Happening
- Morgan Stanley titled the note "What Does the Power Shortfall Mean for Semis?".
- It expects Nvidia and Broadcom to meet 2027 forecasts despite deployment risk.
- Memory, optical and other component suppliers face higher order-cancellation risk.
Where The Capacity Concentrates
- Hyperscaler and specialist cloud share of additions may fall to 64 percent in 2027 and 57 percent in 2028.
- Asia data-centre analysts see 14 GW of US hyperscaler demand shifting to Asia through 2030.
- The firm said international expansion will not solve the US power problem alone.
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