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Serenity summarizes that AI executives have stated that demand has not been disrupted, but the construction speed has led to delays in demand

This week, the AI sector faced a sell-off. Retail investors at Serenity compiled statements from executives of several tech giants and infrastructure suppliers, pointing out a significant disconnect between market sentiment and actual fundamentals. The CEO of Lumentum stated that there is a huge misalignment between demand orders and market performance; the CEO of AMD emphasized that the industry is in the very early stages of an adoption cycle, with demand far exceeding supply.The CEO of Arm warned that if the U.S. hesitates on data center construction, other countries are ready to take over at any time, and China has not slowed down. The CEO of Qualcomm pointed out that the current bottleneck is not demand, but rather limited supply, with shortages in wafers, substrates, assembly, and more. These statements indicate an extremely optimistic outlook for accelerator, networking, and semiconductor companies.Regarding political risks and construction obstacles, Serenity noted that politicians who previously threatened to restrict data centers showed a cooperative attitude after winning the election. Executives at Meta revealed that local politicians are actively seeking dialogue to preserve investment and jobs, but building new data centers is becoming more challenging. Data center developers reported strong pricing and demand, while also paying attention to financing costs and execution risks. Serenity concluded that there is a distinction between demand disappearing and demand delays caused by insufficient construction speed, and currently, there is no evidence that AI demand has been significantly damaged.

Protests against the expansion of data centers have erupted in multiple locations across Europe, demanding a halt to construction

According to Bloomberg, protests against the expansion of data centers continued in multiple locations across Europe on November 7. RTE reported that around 2,000 people participated in a march in Dublin; YLE stated that about 1,300 people gathered in Helsinki, with protests also occurring in several small towns in Finland. Demonstrators in Helsinki marched to Google's office and the location of the parliament. The Stop Dirty Data Centres alliance, composed of local democracy and climate action groups, stated that the action aims to prevent the unchecked expansion of AI data centers.Groups from Scotland, Spain, France, and Denmark participated in the action, calling for a halt to construction until the public can determine through democratic processes how related projects should serve society and the environment. Previously on Friday, hundreds of protesters clashed with police at a Microsoft data center in Amsterdam, resulting in one arrest. As technology companies invest hundreds of billions of dollars in building AI infrastructure, community residents' concerns about land and electricity demands, rising energy costs, and whether the local area can gain economic benefits have intensified. Ireland has become one of Europe's major data center hubs, with official statistics showing that data centers will account for 23% of the country's total electricity consumption by 2025.Finland is also facing large-scale construction. Google announced in September an investment of 13 billion euros, approximately 14.5 billion dollars, to expand existing data centers and build two new facilities, marking its largest investment in Europe to date. According to the Finnish Industrial Federation, data center projects in various stages of planning and construction in Finland are valued at around 80 billion euros. Reports indicate that representatives from Google cleared forest land, stripped topsoil, and built roads before the environmental impact assessment for one project was completed, causing dissatisfaction among local residents. The company responsible for the construction of the project is facing a criminal investigation, and the Finnish government is also advancing legislation to constrain AI expansion. The opposition in Europe echoes recent situations in the United States, where the expansion of data centers has become a significant issue in this week's midterm elections, with some state voters electing local officials who promised to stop or pause related construction.
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