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‘At some point there will be too many AI data centers

Michael Johnson by Michael Johnson
October 8, 2025
in Business & Economy
Reading Time: 3 mins read
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Dell Technologies CEO Michael Dell said Tuesday that while the demand for computing power is “tremendous,” the production of artificial intelligence data centers will eventually clear it.

“I’m sure at some point there will be too many of these things built, but we don’t see any signs of that,” Dell said on “Close Bell: Overtime.”

The hardware maker’s server networking business grew 58% last year and was up 69% last quarter, Dell said. As important language models have evolved into more multimodal and multi-agent systems, the demand for AI processing power and capacity has continued to be strong.

Dell AI servers are powered by Nvidia‘s Blackwell Ultra Chips. The company then sells its devices to customers like the cloud service provider Core and Xai, Elon Musk’s startup.

Dell shares rose more than 3% on Tuesday after it raised its long-term revenue and earnings growth forecast at an analyst meeting.

The computer maker raised its forecast annual revenue growth to 9% from 7%, up from its previous target of 3% to 4%, with diluted earnings per share now expected to be 15% higher, up from its previous target of 8%.

The company reported strong second-quarter earnings in August and said it plans to ship $20 billion worth of AI servers in fiscal 2026. That’s double what it sold last year.

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