Blackstone President and COO: There is still a lot of room for growth in data center demand

Source: Wall Street News

Despite the threat to the AI boom by President Trump’s tariffs, Jonathan Gray, president and chief operating officer of Blackstone, believes there is still a lot of room for data center demand.

Gray said in an interview with the media on Monday:

I think this trend is very strong and will continue. Chip export restrictions have indeed slowed down slightly. Overall, we still see a lot of demand.

I think it's a bit like there's a wall in front of us. We have forgotten that there is a powerful technological revolution in the distance.

Large U.S. technology stocks were under pressure after Trump announced reciprocal tariffs in early April, but have rebounded since then, especially with strong quarterly earnings reports last week. These earnings have boosted investors' confidence in the sustainability of AI transactions, although markets still have concerns about uncertainty over the U.S. recession and global trade barriers.

Although Gray stresses that AI is still in its "early stage", he sees significant growth in the field every year. "The development of AI is shocking, and we deeply agree with it," Gray quoted Meta CEO Zuckerberg last week.

Gray also said that while data center growth demands electricity, he believes that demand is acceptable and stressed the need to consider all sources of electricity, including renewable energy and natural gas.

Speaking of electricity demand, he noted: "This is a global issue, with constraints everywhere. Big companies have recognized this and are expected to come. More importantly, the government is aware of this, so electricity is a key limiting factor in this technological revolution."

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