Infineon says AI data centre boom to persist despite growing backlash
Infineon expects soaring demand for chips powering AI infrastructure to sustain growth, despite mounting concerns over the environmental and economic costs of data centre expansion.
Germany's leading chip manufacturer Infineon has declared that the surge in artificial intelligence data centres will continue unabated, despite mounting opposition, particularly in the United States. The backlash is fueled by growing concerns over the environmental and energy implications of these sprawling facilities. As Democratic lawmakers in the recent midterm elections pledged to curb such projects, Infineon's CEO Jochen Hanebeck acknowledged the heightened debates surrounding AI infrastructure expansion.
However, he argued that this is "rather an American-centric issue." While local communities near AI data centres express their concerns, Hanebeck pointed out that globally, many sparsely populated regions exist where these data centres can be built without major impact. He is confident that operators of these centers and American hyperscalers will locate sites in regions that are not confined to the United States.
Hanebeck predicted that AI data centre expansion will diversify regionally, which he considers a positive trend. Infineon reported a 12% increase in revenue for its fiscal year ending September, and forecast sales growth to reach 20% in the current year due to the demand for AI data centre services. Although Infineon does not design its own AI processors like Nvidia, it supplies chips that facilitate energy delivery to these sites.
Hanebeck emphasized that AI holds significant value and will continue to grow, calling the technology a key driver of their growth and profitability.
Written by urgent.news from Euronews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
