Infineon expects soaring demand for chips powering AI infrastructure to sustain growth, despite mounting concerns over the environmental and economic costs of data centre expansion. The German chip giant said on Tuesday that the rapid buildout of AI data centres will not slow down despite growing resistance in the United States, even as it predicted the backlash would likely spread to other countries.
Jochen Hanebeck, chief executive of the company, acknowledged the "growing debates about expanding AI infrastructure" during an earnings call. Hanebeck characterized the current opposition as a "rather American-centric topic," noting that while people living in the direct vicinity of AI data centres have voiced concerns, many regions around the globe are very sparsely populated.
Infineon does not manufacture AI processors like those designed by Nvidia, but the company supplies the chips used to deliver electricity from the grid to data centre sites. Hanebeck stated that the expansion of these facilities will likely diversify on a regional basis, suggesting that American hyperscalers will find locations outside of the United States to build new sites.
