AI's $1.1T data-center bet: productivity must grow 2.7x by 2030 to break even
nordicinst · x · 2026-09-15
MIT Technology Review examines whether the trillion-dollar AI data-center buildout can pay off. Wharton finance professor Jessica Wachter inverts the question: hyperscaler spending will approach $1.1 trillion by 2027, so how fast must earnings grow? Her estimate: accounting for cost of capital, a 15% return, and depreciation, AI companies must boost their own productivity 2.7x by 2030 to break even — replicating a decade of 1990s IT-boom growth in half the time. The piece urges Europe to demand clear ROI, transparency, and sustainable energy before the data-center bubble pops.
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