{
  "id": 15183388,
  "title": "AI race may depend more on access to power, infrastructure than chip supply: Morgan Stanley",
  "url": "https://urgent.news/2026/10/17/ai-race-may-depend-more-on-access-to-power-infrastructure-than-chip",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-17T11:02:52.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/us-stocks/news/ai-race-may-depend-more-on-access-to-power-infrastructure-than-chip-supply-morgan-stanley/articleshow/135012540.cms"
  },
  "original_language": "en",
  "account": "A Morgan Stanley report suggests that the global AI race may hinge more on access to electricity, infrastructure, and financing than mere technological advancements, with experts warning that smaller players could face significant hurdles. The assessment, presented in the equity research paper titled \"What Does the Power Shortfall Mean for Semis?\" highlights a projected US data-center power deficit of 32 gigawatts (GW) by 2028, accounting for nearly a third of projected power needs. This shortfall threatens to impede the AI boom, as Nvidia confirmed there is simply not enough electricity to meet demand. Morgan Stanley notes that large, financially stable companies with predictable revenues are gaining priority access to electricity, potentially leaving smaller developers at a disadvantage. The report estimates that major technology firms and cloud providers could control around 94% of global data-center capacity additions by 2026, rising to 64% and 57% respectively in 2027 and 2028. This concentration of power could squeeze out other players in the long run. Moreover, if data centers cannot accommodate the chips they have ordered, semiconductor manufacturers may face delivery delays or order cancellations. Morgan Stanley maintains confidence in Nvidia and Broadcom's forecasting abilities, but warns of risks for memory chip, optical equipment, and other supporting component suppliers. The infrastructure challenge may persist beyond 2028, with the cumulative US data-center power shortfall potentially expanding to 68 GW by 2029. The shortage could push US hyperscalers to expand computing infrastructure abroad, notably in Asian markets such as India. Despite the challenges, Morgan Stanley expects AI companies to continue expanding their presence internationally, but cautions that this may not alleviate the US power problem.",
  "summary": "According to Morgan Stanley's latest analysis, the burgeoning AI infrastructure market is on track to experience a dire electricity shortfall by 2028. This impending shortage poses a serious risk for smaller enterprises striving to keep pace with their larger counterparts. A predicted 32-gigawatt power deficit threatens data-center development and chip deployment. While global strategies might be…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}