I'm still in the AI industry (as a server component supplier), so I get partial views on where things are going. Freaking unreal. I mentioned earlier, my business unit supplies cables to the server. Our sales forecast has been doubling every year the last few years = $300m was the goal last year (landed nVidia program for $300m on it's own, and another company for $200m). 2024 = $300m, 2025 = $1Bn, 2026 = $2Bn....for just my little harness business!
For those not familiar with the industry, many suppliers (like me) have factories in China, but are scrambling to grow both our China facilities and non-China areas (diversification of supply, not just avoiding tarriffs). Components flow to 3rd party companies 'Configuration Managers (CM)' or similar names who put all the parts in a rack (imagine the floor to ceiling 2ft wide x 6ft high x 3ft deep you may see in a company's IT room, sealed with security and air conditioned). The companies driving this (nVidia, OpenAI, Meta, Microsoft, etc) are all primarily based in California, but their CMs are spread across Asia (a lot in Taiwan) and growing in western US (spilling from Cali out to Kansas, Utah, other cheaper land areas). The latest design (I had the $200m program) was using a larger rack, about 3' w x 6' h x 3' deep. My program is getting killed, because it is too far behind nVidia to compete. Now everyone is moving to a 'new' size rack that will be roughly 4'w x 7'h x 5'd, and some customers are considering a 'double wide' version of this. We are hitting physical limits on what can be produced and assembled. The trays that slide into this rack (4'x5') are upwards of 120lb and takes a team of 4 guys to lift and put in place (consider what we're going thru for assembly!). So, yeah, physical size continues to grow while companies (nVidia et al) continue to develop faster/stronger chips and more dense populations of chips.
All that to say power consumption is growing VERY fast. Some are shifting to liquid cooled racks to deal with the heat. Yeah, coolant and electronics aren't a natural fit. Moreover, the US power grid can't keep up. If all the major players are in California, and it has had brown outs and rolling blackouts for years....that ain't gonna work. We can't supply America's power demands today, no way we can keep up with what AI will demand in the future. This isn't a fear of mine, more of a "wonder what we'll do to address that?" I think the move by CMs to (mid) west states is both for cheaper land, but also for lands where the power grid can be grown to match demand, as opposed to trying to put this on a Cali grid that needs a complete overhaul. Still, that says the grid can be grown...it doesn't address the actual power supply.
I don't intend to drag politics into this thread, I will only state I hope Trump's effort to 'drill baby drill' is intended to provide some of the power needed here. Moreover, I'm keenly interested in compact fusion as a potential energy source:
Discover our revolutionary approach to nuclear fusion, leveraging compact design and rapid development cycles to harness powerful energy comparable to the sun.
www.lockheedmartin.com
Nuclear fusion is the process by which the sun works. Our concept will mimic that process within a compact magnetic container and release energy in a controlled fashion to produce power we can use.
A reactor small enough to fit on a truck could provide enough power for a small city of up to 100,000 people.
Building on more than 60 years of fusion research, the Lockheed Martin Skunk Works approach to compact fusion is a high beta concept. This concept uses a high fraction of the magnetic field pressure, or all of its potential, so we can make our devices 10 times smaller than previous concepts. That means we can replace a device that must be housed in a large building with one that can fit on the back of a truck.
Nuclear is indesputably cleaner than fossile fuels, more reliable than green energy. Tho, I'm more excited about the portability, or you can have several in an area to support a larger city. Case in point, I've heard of 3 mile island (the long ago shut down nuclear plant) being used for this type of service. The gain is that connections to the grid are already in place, minimal investment required to adapt the new technology. The trade off is safety/security. We certainly don't want a small nuclear reactor on the back of a truck available for mobile terrorism

I imagine existing infrastructe (ie 3MI) has security in place that can be adapted, but I foresee these portable fusion trucks being used in more public areas as well. We will need to figure out some security for those for both sabatoge and for theft.