Elon Musk says it is difficult putting up AI data centres anywhere except China because …

Elon Musk has warned that scaling artificial intelligence (AI) on Earth will hit a massive “hardware wall,” revealing that it is nearly impossible to build and scale new AI data centres anywhere outside of China due to a severe global electricity shortage. Speaking to podcaster Dwarkesh Patel and John Collison, the Tesla and xAI founder stated that while the production of advanced AI chips is growing exponentially, the world’s electrical grids are completely stagnant.

“The availability of energy is the issue,” Musk explained to Dwarkesh Patel in an interview clip Tesla CEO shared recently, adding, “If you look at electrical output outside of China… it’s more or less flat. Very slight increase, but pretty much flat.”