AI data centres

A new report warns that climate change and the rapid growth of artificial intelligence are together placing unprecedented pressure on the world's water systems. Rising temperatures are disrupting rainfall and depleting supplies, while AI data centres consume vast amounts of water for cooling, intensifying competition for a scarce resource.

The European Union is moving to restrict the energy and water consumption of data centres, a sector whose rapid growth driven by cloud computing and artificial intelligence has put mounting pressure on electricity grids and water supplies. The proposal signals tighter regulation of tech infrastructure across member states, with debate focusing on how sustainability rules will affect data centre operators and Europe's digital economy.

AI companies that have taken on heavy debt to fund data centres and infrastructure are facing higher borrowing costs as bond yields rise. Rising yields increase the expense of refinancing, putting pressure on firms that have relied on cheap credit to finance the AI boom.

Google has announced Project Suncatcher, a research initiative to run machine learning infrastructure on solar-powered satellite constellations in orbit. The plan, outlined on Google's research blog, envisions data centre-scale compute in space to tap unlimited solar energy as terrestrial energy demands from AI grow. Early discussion centres on feasibility, launch costs, and whether orbiting hardware could realistically scale.

Big Tech is betting on smart glasses and AI-powered gadgets as its next major product category, but the devices face significant privacy challenges. Always-on cameras, microphones and AI assistants that continuously collect ambient data raise questions about consent, surveillance in public spaces and how companies will safeguard the information these wearables gather. The debate centres on whether consumers will accept the trade-off between convenience and constant data collection.

Oracle is reportedly contractually obliged to pay investors in a data centre site even if the location has no electricity supply. The Financial Times reports the arrangement shifts power-delivery risk onto the company, underscoring how aggressively Oracle is financing AI-era data centre capacity and the financial exposure that comes with projects racing ahead of grid availability.

Nvidia has brought LG Electronics into its Partner Network as a preferred cooling provider, as the company works to address the enormous power and heat demands of its AI data centre hardware. The deal gives LG a direct route to supply thermal management technology, amid growing focus on cooling as a bottleneck for AI infrastructure.

Major political parties are pointing to a breach at OpenAI as evidence that more data centres are needed, arguing stronger domestic computing infrastructure is key to protecting sensitive data and reducing reliance on foreign providers. The claim has drawn attention amid ongoing debate over national security, cloud dependence, and the risks of concentrating AI systems in few hands.

Reports indicate China may approve purchases of Nvidia's new RTX Pro 5500 chips by Alibaba and ByteDance, a potential easing of restrictions on advanced US semiconductor sales to major Chinese tech firms. The move would give two of China's largest companies access to hardware relevant to AI and data centre work, and investors are watching Nvidia's exposure to the Chinese market closely.

US contract chipmaker GlobalFoundries reports strong demand for Chinese optical modules as data centre construction accelerates. The company is expanding its presence in China to serve domestic clients amid an infrastructure boom, positioning itself to benefit from heavy investment in data centres despite ongoing tensions between Washington and Beijing over semiconductor supply chains.

Venture capital firms that once prioritised carbon-cutting climate technologies are increasingly directing money toward companies that supply power for artificial intelligence, according to The Wall Street Journal. The shift reflects surging electricity demand from data centres, which has made energy generation and grid technologies a hotter bet for investors than emissions reduction itself.