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Near-term (1-2 years)
January 14, 2026

Honey, I shrunk the data centres: Is small the new big?

8 hours agoBBC Tech

Summary

Huge data centres are being built to handle AI computing but some experts say they aren't necessary.

Impact Areas

cost
risk
strategic

Sector Impact

For Energy & Utilities: Distributed AI capabilities could enable smarter grids, optimized energy consumption, and predictive maintenance of infrastructure without relying on massive, centralized data centers. Cybersecurity & AI Safety: Distributed data centers create new attack surfaces, requiring enhanced cybersecurity measures and posing risks to AI safety, especially if AI is used to manage critical infrastructure.

Analysis Perspective
Executive Perspective

Businesses deploying AI, particularly for real-time applications at the edge, could benefit from lower latency and reduced bandwidth costs by utilizing smaller, localized data centers. This could impact how AI models are deployed, requiring a shift towards more distributed and edge-optimized architectures and potentially reducing reliance on large cloud providers. Efficient model deployment in these settings will become increasingly critical.

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