The era of data centers is proving to be a new experience for tech companies, which are getting into the artificial intelligence construction business.
Traditionally, tech companies have had it relatively easy in terms of income, many of them used to having all the money they need.
But the High Tech Texan, Michael Garfield, says that’s one reason companies like Google and Amazon are out of their element in data center building.
“Buildings and facilities and power and construction and financing,” he says.
“That, I don’t think traditional technology companies have been used to because this is not just software code, this is actually old school economy.”
And with all the money that companies like Microsoft are used to keeping in the bank, it may be a little hard for them to get used to having to depend on banks for financing.
“They may have to look to actually borrow money, potentially visit a debt market, and this is a whole other category that tech companies are not used to,” the host of Houston’s 850 KPRC radio “High Tech Texan” program says.
And while it’s a whole new world for the tech bros, it’s kind of sadly ironic to have companies like Amazon, that caused so many brick and mortar businesses to go out of business 20 years ago, now going to banks asking for money to build — brick and mortar.