[AI Neoclouds Computing and Smart City Data Connection.] Gartner’s research warning that more than $3.5T in AI infrastructure investments could be written off by 2030 has intensified concerns over the profitability of the AI boom, sending neocloud stocks lower in trading on Thursday. AI data center owners would need to generate $8.5T in cumulative revenue through 2030 to cover capital spending and financing costs while achieving a 12% return on invested capital. However, Gartner forecasts just $3.6T in enterprise and consumer AI revenue over that period, less than half the amount required. Gartner also predicts that rising costs and limited differentiation will lead more than 80% of neocloud providers to cease operating independently by 2030.
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