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High data centre, chip costs and cheaper AI models pose risks to capacity usage: Infosys CEO

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High data centre, chip costs and cheaper AI models pose risks to capacity usage: Infosys CEO

Business News Tech IT High data centre, chip costs and cheaper AI models pose risks to capacity usage: Infosys CEO

High data centre, chip costs and cheaper AI models pose risks to capacity usage: Infosys CEO

High data centre and chip costs, coupled with emerging AI models offering cheaper inference, pose risks to AI infrastructure investments and future capacity utilisation, Infosys CEO Salil Parekh said.

High data centre and chip costs , coupled with emerging AI models offering cheaper inference, pose risks to AI infrastructure investments and future capacity utilisation, Infosys CEO Salil Parekh said. Speaking at the Bloomberg New Economy 2026, the Infosys CEO highlighted that the rapid expansion of AI infrastructure comes with technological risks, particularly due to the high cost of building data centres and uncertainty over how long existing capacity will remain relevant. "In terms of the risk, I think, my sense is there is some risk in technology what we see in the cost of the buildout of the data centre capacity, the chips they are massively expensive today," he said.

" Apart from this, he highlighted Infosys is already building AI agents for enterprise clients and developing methods to transition legacy technology to newer systems. " Parekh said companies are increasingly examining whether they can perform the same tasks using lower-cost tokens rather than relying on the latest AI models. ," he said. Parekh further stressed, data is becoming "fastest growing commodity" particularly for large enterprises and governments. Adding data requirements are even more rigid now, he noted, rquirements of soverign cloud is further restriciting some of the capacity buildout.


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