Firstly, AI even without super chips will generate explosive demand for processing power. We didn’t notice the expansion of processing capacity with the internet because both the internet and the capacity expanded hand in hand. With internet as launchpad AI will put huge pressure on communication, storage and processing capacity.
Also Infratil data centres serve specialist clientele with higher standards of data security ( defence, policy and intelligence related). I suspect they will find even the 1Gw planned capacity expansion insufficient and likely will run out of investment funds before running out of opportunity.
As for OneNZ, as per the last report they are doing a little better than Spark. Revenues declined slightly while margin improved. For sure, efficiency gain can only do so much for a while in a mature market. The potential for competition from Starlink is not clear to me.
IFT Price at posting:
$10.26 Sentiment: None Disclosure: Held
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