Cooling the AI buildout

Power constraints have dominated the conversation around AI infrastructure, but the buildout is facing a broader convergence of execution risks. Cooling, water use, permitting, labour shortages and growing local opposition are emerging as critical factors that could affect where and how quickly new data centres are built.​

In this episode of Barclays Brief, Ronnie Wexler, Global Head of Equities Distribution, speaks with Will Thompson, Thematic Investing Research Analyst, about the challenges shaping the next phase of AI infrastructure. They explore why cooling is becoming increasingly important, how water use is emerging as a key consideration in data centre operations, and what these pressures could mean for deployment timelines and market expectations.​

They also discuss how hyperscalers are taking different approaches to cooling and water use, highlighting the complexity of balancing efficiency, sustainability and local impacts. Together, these pressures point to execution risks that may not yet be fully reflected in markets.​

Listeners can hear more related to this topic:​​​

• ​AI goes economy wide​
• Physical AI: Wealth creation or economic displacement?​

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Clients can read more on Barclays Live:​​

• Powering AI: Demystifying Data Center Cooling & Water Use ​
• Powering AI: New Amazon Data Center Water Disclosure Implies High Electricity Use ​

Important Content Disclosures​

​Important Non-Research Content Disclosures​

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This content is for informational purposes only and does not constitute investment advice or a recommendation. Views expressed are those of the speakers and may not reflect those of the firm. Any forward-looking statements are based on current assumptions and subject to risks and uncertainties.​

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