DeepSeek's AI Model R1 Sparks Debate on Data Center Growth Projections

Peking/Munich - DeepSeek's new AI model, R1, is generating discussion about data center efficiency. The model promises to increase efficiency, potentially impacting growth forecasts for data centers. While some analysts were initially skeptical, others see it as a catalyst for growth. UBS suggests a potential growth rate of 20% in 2025, despite earlier expectations of 10-15% growth until 2028. The Jevons-Paradoxon could also drive demand as cheaper AI models lead to increased usage. Hyperscalers like Google and Meta are maintaining investments, and Goldman Sachs forecasts continued demand until at least 2026. The long-term impact of DeepSeek's R1 remains to be seen.