Alibaba Chairman Joe Tsai cautioned that so-called hyperscalers — companies with big AI ambitions like Meta Platforms and Microsoft — are rushing to construct data centers that might not be justified by future demand.

Alibaba Group Chairman Joe Tsai has raised concerns about a possible bubble in data center construction for AI. Speaking at the HSBC Global Investment Summit in Hong Kong, Joe warned that the current boom in server farms could overload real demand. This expansion is moving fast globally, from the US to Asia.

Billionaire Joe Tsai said the level of speculative data center development was worrying as more than $1T flows to the sector in the U.S. alone.