Nvidia CEO Jensen Huang says the AI industry needs to do “better” when it comes to data centers.
“The technology industry, the builders, and, have to do a much better job working with the communities to get prepared for this AI infrastructure build-out,” Huang told CNBC’s Jim Cramer on Wednesday when asked about how Nvidia’s customers could show communities they are serious about data center concerns.
Huang is the latest voice in tech, and arguably the biggest so far, to acknowledge that the industry has to do a better job of selling communities on building data centers. Polling shows that Americans have become deeply skeptical of the massive facilities that house the advanced chips that train and serve AI demand.
Huang said the industry needs to sell the idea that data center construction can help reindustrialize the nation. Addressing a frequent concern, Huang said data centers could actually lower energy costs.
“It is also the case this is the first time in probably the last century that we’re able to invest in sustainable energy, invest in improving our energy grid, securing our energy supply, reducing the cost of energy across the country,” he said. “This is the first time in history that we’re able to do that because of the enormous market dynamics, the market forces that are able to invest in the energy ecosystem.”
Business Insider has previously reported that rapid data center expansion could increase electricity costs. A recent study by researchers at the Massachusetts Institute of Technology found that data centers could reduce consumer costs by adjusting their power consumption.
The MIT researchers found that data centers that shift their power consumption to off-peak hours could lower average energy costs by up to 4% in the Mid-Atlantic, 5% in Texas, and 2% in 11 western states compared to facilities that didn’t change their consumption patterns. The researchers studied power grids in each of those three areas due to the prevalence of data centers there.
There is a big caveat to their findings. The researchers said that under some scenarios, data centers would need to shift nearly 50% of their energy consumption to non-peak hours, such as the afternoon.
On Wednesday, Nvidia reported that data center revenue totaled $89 billion in the second quarter of FY 26, up 117% from a year ago. The figure also surpassed Wall Street’s estimates, illustrating just how lucrative the broader AI buildout is for the world’s largest company by market cap.
Like President Donald Trump, Huang warned of the costs to the US if data centers aren’t built out.
“We have to make sure that our communities, our society, all of our companies, all of our people in the United States embrace this technology so that we can take advantage of what this technology could do for all of our ecosystems, all of our economy, and all of our societies,” Huang said. He added, “Otherwise, we’re going to get left behind.”
At the same time, the vibes in the US look increasingly dour. Governors have moved to pump the brakes on data center construction amid a growing public backlash.
Texas Gov. Greg Abbott, who is seeking reelection, imposed an effective moratorium on new data center construction until state agencies complete a comprehensive audit. Abbott was rather blunt about how he went from declaring Texas the “epicenter of AI development” to imposing a moratorium in less than a year.
“They basically dug their own grave for the problem that’s been caused for them, and that’s why they got the backlash they deserve,” Abbott said during an interview on ABC’s “This Week.”
Read the full article here
