Alibaba's Joe Tsai Warns of Datacenter Bubble Amid AI Investment Surge in Hong Kong

Hong Kong - Alibaba Group Holding chairman Joe Tsai cautioned about a potential bubble forming in datacenter construction due to excessive investment in AI infrastructure. Speaking at the HSBC Global Investment Summit on March 25, Tsai noted that many datacenter projects are being built without secured customer agreements. He expressed concern over the scale of US spending, citing Amazon, Alphabet, and Meta's pledges to invest billions in AI infrastructure. Tsai questioned whether current investments are outpacing actual demand, highlighting reports of Microsoft canceling some data center leases. He acknowledged the significant investments being made but suggested a potential overestimation of immediate AI service demand.