Germany's chip giant Infineon stated that the rapid buildout of artificial intelligence data centres will not slow down despite growing resistance in the United States, while predicting the backlash will likely spread to other countries. There has been increased opposition to the environmental and energy costs of the sprawling sites in the US, with many Democratic winners in recent midterm elections vowing to put a brake on the projects.
Jochen Hanebeck, chief executive of the German giant, acknowledged in an earnings call that there are growing debates about expanding AI infrastructure. Hanebeck noted that people living in the direct vicinity of AI data centres voice concerns the world over, but pointed out that there are many sparsely populated regions around the globe.
Operators of these data centres and American hyperscalers will find areas that are not necessarily located all in the United States, Hanebeck said, suggesting they might be built in other countries. He believes the expansion of data centres will diversify on a regional basis and that this is a good trend.
Infineon reported a 12 percent rise in revenue for its fiscal year to the end of September. The company forecast sales growth climbing to 20 percent in the current year due to artificial intelligence data centre demand.
Although Infineon does not make AI processors themselves, such as those designed by Nvidia, it supplies chips that help deliver electricity from the grid to the sites. Hanebeck stated that artificial intelligence delivers real value and its importance will only grow, calling the technology a key driver of their growth and profitability.
Source: Euronews. Read the original report ↗