AI’s Infrastructure Boom Faces Its First Cracks

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Sky-high AI valuations depend on unprecedented infrastructure expansion, but that foundation is starting to wobble. Big players promised nearly $1.3 trillion in future spending, with projects like the $500 billion Stargate venture and Meta’s $72 billion 2025 capex fueling the compute race.

However, grid constraints, rising construction costs, community pushback, and fragile financing structures are slowing progress. A key warning sign came when Blue Owl Capital pulled out of a $10 billion Oracle data-center deal tied to OpenAI. The AI buildout continues — but the assumption that all promised spending will materialize is no longer unquestioned.