Business
A.I. Computing Power Is Splitting the World Into Haves and Have-Nots
Where A.I. Data Centers Are Located
Only 32 nations, mostly in the Northern Hemisphere, have A.I.-specialized data centers.
Last month, Sam Altman, the chief executive of the artificial intelligence company OpenAI, donned a helmet, work boots and a luminescent high-visibility vest to visit the construction site of the company’s new data center project in Texas.
Bigger than New York’s Central Park, the estimated $60 billion project, which has its own natural gas plant, will be one of the most powerful computing hubs ever created when completed as soon as next year.
Around the same time as Mr. Altman’s visit to Texas, Nicolás Wolovick, a computer science professor at the National University of Córdoba in Argentina, was running what counts as one of his country’s most advanced A.I. computing hubs. It was in a converted room at the university, where wires snaked between aging A.I. chips and server computers.
“Everything is becoming more split,” Dr. Wolovick said. “We are losing.”
Artificial intelligence has created a new digital divide, fracturing the world between nations with the computing power for building cutting-edge A.I. systems and those without. The split is influencing geopolitics and global economics, creating new dependencies and prompting a desperate rush to not be excluded from a technology race that could reorder economies, drive scientific discovery and change the way that people live and work.
The biggest beneficiaries by far are the United States, China and the European Union. Those regions host more than half of the world’s most powerful data centers, which are used for developing the most complex A.I. systems, according to data compiled by Oxford University researchers. Only 32 countries, or about 16 percent of nations, have these large facilities filled with microchips and computers, giving them what is known in industry parlance as “compute power.”
The United States and China, which dominate the tech world, have particular influence. American and Chinese companies operate more than 90 percent of the data centers that other companies and institutions use for A.I. work, according to the Oxford data and other research.
In contrast, Africa and South America have almost no A.I. computing hubs, while India has at least five and Japan at least four, according to the Oxford data. More than 150 countries have nothing.
Today’s A.I. data centers dwarf their predecessors, which powered simpler tasks like email and video streaming. Vast, power-hungry and packed with powerful chips, these hubs cost billions to build and require infrastructure that not every country can provide. With ownership concentrated among a few tech giants, the effects of the gap between those with such computing power and those without it are already playing out.
The world’s most used A.I. systems, which power chatbots like OpenAI’s ChatGPT, are more proficient and accurate in English and Chinese, languages spoken in the countries where the compute power is concentrated. Tech giants with access to the top equipment are using A.I. to process data, automate tasks and develop new services. Scientific breakthroughs, including drug discovery and gene editing, rely on powerful computers. A.I.-powered weapons are making their way onto battlefields.
Nations with little or no A.I. compute power are running into limits in scientific work, in the growth of young companies and in talent retention. Some officials have become alarmed by how the need for computing resources has made them beholden to foreign corporations and governments.
“Oil-producing countries have had an oversized influence on international affairs; in an A.I.-powered near future, compute producers could have something similar since they control access to a critical resource,” said Vili Lehdonvirta, an Oxford professor who conducted the research on A.I. data centers with his colleagues Zoe Jay Hawkins and Boxi Wu.
A.I. computing power is so precious that the components in data centers, such as microchips, have become a crucial part of foreign and trade policies for China and the United States, which are jockeying for influence in the Persian Gulf, in Southeast Asia and elsewhere. At the same time, some countries are beginning to pour public funds into A.I. infrastructure, aiming for more control over their technological futures.
The Oxford researchers mapped the world’s A.I. data centers, information that companies and governments often keep secret. To create a representative sample, they went through the customer websites of nine of the world’s biggest cloud-service providers to see what compute power was available and where their hubs were at the end of last year. The companies were the U.S. firms Amazon, Google and Microsoft; China’s Tencent, Alibaba and Huawei; and Europe’s Exoscale, Hetzner and OVHcloud.
The research does not include every data center worldwide, but the trends were unmistakable. U.S. companies operated 87 A.I. computing hubs, which can sometimes include multiple data centers, or almost two-thirds of the global total, compared with 39 operated by Chinese firms and six by Europeans, according to the research. Inside the data centers, most of the chips — the foundational components for making calculations — were from the U.S. chipmaker Nvidia.
“We have a computing divide at the heart of the A.I. revolution,” said Lacina Koné, the director general of Smart Africa, which coordinates digital policy across the continent. He added: “It’s not merely a hardware problem. It’s the sovereignty of our digital future.”
‘Sometimes I Want to Cry’
There has long been a tech gap between rich and developing countries. Over the past decade, cheap smartphones, expanding internet coverage and flourishing app-based businesses led some experts to conclude that the divide was diminishing. Last year, 68 percent of the world’s population used the internet, up from 33 percent in 2012, according to the International Telecommunication Union, a United Nations agency.
With a computer and knowledge of coding, getting a company off the ground became cheaper and easier. That lifted tech industries across the world, be they mobile payments in Africa or ride hailing in Southeast Asia.
But in April, the U.N. warned that the digital gap would widen without action on A.I. Just 100 companies, mostly in the United States and China, were behind 40 percent of global investment in the technology, the U.N. said. The biggest tech companies, it added, were “gaining control over the technology’s future.”
Few Companies Control A.I. Computing
Tiles show total availability zones for A.I. offered by each company, a metric used by researchers as a proxy for A.I. data centers.
The gap stems partly from a component everyone wants: a microchip known as a graphics processing unit, or GPU. The chips require multibillion-dollar factories to produce. Packed into data centers by the thousands and mostly made by Nvidia, GPUs provide the computing power for creating and delivering cutting-edge A.I. models.
Obtaining these pieces of silicon is difficult. As demand has increased, prices for the chips have soared, and everyone wants to be at the front of the line for orders. Adding to the challenges, these chips then need to be corralled into giant data centers that guzzle up dizzying amounts of power and water.
Many wealthy nations have access to the chips in data centers, but other countries are being left behind, according to interviews with more than two dozen tech executives and experts across 20 countries. Renting computing power from faraway data centers is common but can lead to challenges, including high costs, slower connection speeds, compliance with different laws, and vulnerability to the whims of American and Chinese companies.
Qhala, a start-up in Kenya, illustrates the issues. The company, founded by a former Google engineer, is building an A.I. system known as a large language model that is based on African languages. But Qhala has no nearby computing power and rents from data centers outside Africa. Employees cram their work into the morning, when most American programmers are sleeping, so there is less traffic and faster speeds to transfer data across the world.
“Proximity is essential,” said Shikoh Gitau, 44, Qhala’s founder.
“If you don’t have the resources for compute to process the data and to build your A.I. models, then you can’t go anywhere,” said Kate Kallot, a former Nvidia executive and the founder of Amini, another A.I. start-up in Kenya.
In the United States, by contrast, Amazon, Microsoft, Google, Meta and OpenAI have pledged to spend more than $300 billion this year, much of it on A.I. infrastructure. The expenditure approaches Canada’s national budget. Harvard’s Kempner Institute, which focuses on A.I., has more computing power than all African-owned facilities on that continent combined, according to one survey of the world’s largest supercomputers.
Brad Smith, Microsoft’s president, said many countries wanted more computing infrastructure as a form of sovereignty. But closing the gap will be difficult, particularly in Africa, where many places do not have reliable electricity, he said. Microsoft, which is building a data center in Kenya with a company in the United Arab Emirates, G42, chooses data center locations based largely on market need, electricity and skilled labor.
“The A.I. era runs the risk of leaving Africa even further behind,” Mr. Smith said.
Jay Puri, Nvidia’s executive vice president for global business, said the company was also working with various countries to build out their A.I. offerings.
“It is absolutely a challenge,” he said.
Chris Lehane, OpenAI’s vice president of global affairs, said the company had started a program to adapt its products for local needs and languages. A risk of the A.I. divide, he said, is that “the benefits don’t get broadly distributed, they don’t get democratized.”
Tencent, Alibaba, Huawei, Google, Amazon, Hetzner and OVHcloud declined to comment.
The gap has led to brain drains. In Argentina, Dr. Wolovick, 51, the computer science professor, cannot offer much compute power. His top students regularly leave for the United States or Europe, where they can get access to GPUs, he said.
“Sometimes I want to cry, but I don’t give up,” he said. “I keep talking to people and saying: ‘I need more GPUs. I need more GPUs.’”
Few Choices
The uneven distribution of A.I. computing power has split the world into two camps: nations that rely on China and those that depend on the United States.
The two countries not only control the most data centers but are set to build more than others by far. And they have wielded their tech advantage to exert influence. The Biden and Trump administrations have used trade restrictions to control which countries can buy powerful A.I. chips, allowing the United States to pick winners. China has used state-backed loans to encourage sales of its companies’ networking equipment and data centers.
The effects are evident in Southeast Asia and the Middle East.
In the 2010s, Chinese companies made inroads into the tech infrastructure of Saudi Arabia and the Emirates, which are key American partners, with official visits and generous financing. The United States sought to use its A.I. lead to push back. In one deal with the Biden administration, an Emirati company promised to keep out Chinese technology in exchange for access to A.I. technology from Nvidia and Microsoft.
In May, President Trump signed additional deals to give Saudi Arabia and the Emirates even more access to American chips.
A similar jostling is taking place in Southeast Asia. Chinese and U.S. companies like Amazon, Alibaba, Nvidia, Google and ByteDance, the owner of TikTok, are building data centers in Singapore and Malaysia to deliver services across Asia.
Globally, the United States has the lead, with American companies building 63 A.I computing hubs outside the country’s borders, compared with 19 by China, according to the Oxford data. All but three of the data centers operated by Chinese firms outside their home country use chips from Nvidia, despite efforts by China to produce competing chips. Chinese firms were able to buy Nvidia chips before U.S. government restrictions.
Companies and countries throughout the world rely mostly on major American and Chinese cloud operators for A.I. facilities.
Where the World Gets Its A.I.
Even U.S.-friendly countries have been left out of the A.I. race by trade limits. Last year, William Ruto, Kenya’s president, visited Washington for a state dinner hosted by President Joseph R. Biden Jr. Several months later, Kenya was omitted from a list of countries that had open access to needed semiconductors.
That has given China an opening, even though experts consider the country’s A.I. chips to be less advanced. In Africa, policymakers are talking with Huawei, which is developing its own A.I. chips, about converting existing data centers to include Chinese-made chips, said Mr. Koné of Smart Africa.
“Africa will strike a deal with whoever can give access to GPUs,” he said.
If You Build It
Alarmed by the concentration of A.I. power, many countries and regions are trying to close the gap. They are providing access to land and cheaper energy, fast-tracking development permits and using public funds and other resources to acquire chips and construct data centers. The goal is to create “sovereign A.I.” available to local businesses and institutions.
In India, the government is subsidizing compute power and the creation of an A.I. model proficient in the country’s languages. In Africa, governments are discussing collaborating on regional compute hubs. Brazil has pledged $4 billion on A.I. projects.
“Instead of waiting for A.I. to come from China, the U.S., South Korea, Japan, why not have our own?” Brazil’s president, Luiz Inácio Lula da Silva, said last year when he proposed the investment plan.
Even in Europe, there is growing concern that American companies control most of the data centers. In February, the European Union outlined plans to invest 200 billion euros for A.I. projects, including new data centers across the 27-nation bloc.
Mathias Nobauer, the chief executive of Exoscale, a cloud computing provider in Switzerland, said many European businesses want to reduce their reliance on U.S. tech companies. Such a change will take time and “doesn’t happen overnight,” he said.
Still, closing the divide is likely to require help from the United States or China.
Cassava, a tech company founded by a Zimbabwean billionaire, Strive Masiyiwa, is scheduled to open one of Africa’s most advanced data centers this summer. The plans, three years in the making, culminated in an October meeting in California between Cassava executives and Jensen Huang, Nvidia’s chief executive, to buy hundreds of his company’s chips. Google is also one of Cassava’s investors.
The data center is part of a $500 million effort to build five such facilities across Africa. Even so, Cassava expects it to address only 10 percent to 20 percent of the region’s demand for A.I. At least 3,000 start-ups have expressed interest in using the computing systems.
“I don’t think Africa can afford to outsource this A.I. sovereignty to others,” said Hardy Pemhiwa, Cassava’s chief executive. “We absolutely have to focus on and ensure that we don’t get left behind.”
Business
Nvidia’s Future in China Remains Unclear After Trump-Xi Summit
When Jensen Huang, Nvidia’s chief executive, joined the group of American business leaders traveling with President Trump to Beijing at the last minute this week, many took it as a sign that progress was in store for the company’s long-stalled sales in China.
But as the summit between Mr. Trump and Xi Jinping, China’s top leader, wrapped up on Friday, the fate of Nvidia’s artificial intelligence chips in China was no clearer than it had been before.
Even Jamieson Greer, the U.S. trade representative, seemed uncertain about Nvidia’s future in China, saying in an interview with Bloomberg News on Friday that it was up to Beijing whether Chinese companies would make more purchases from the American chip giant.
Last December, President Trump approved Nvidia, the world’s leading chip maker, to sell one of its most powerful A.I. chips, the H200, to China. But since then, the Chinese government has yet to greenlight any purchases, and no H200s have been sold.
Instead, Beijing has pushed Chinese companies to rely on homegrown technology from chipmakers such as Huawei.
Just before Mr. Trump met with Mr. Xi, China reached a milestone in its long-running quest for technological self-sufficiency. The Chinese start-up DeepSeek said for the first time that its latest artificial intelligence model had been optimized to run on Huawei chips.
Mr. Huang had long warned that this shift was coming. Soon, China’s A.I. companies will rely on Chinese hardware rather than American technology, eroding U.S. influence over A.I. development in China, he has predicted.
U.S. officials did not seem to push the issue during their trip to China this week.
The decision on whether to buy the H200 “is going to be a sovereign decision for China,” Mr. Greer said in the interview. “Obviously we think it could be helpful to them in the long run, but they’ll just have to make their decision on that.”
For years, Washington has used export controls to slow China’s progress in advanced technologies like A.I., and analysts had expected Chinese officials to air their frustration with those restrictions this week.
Despite Mr. Huang’s presence in Beijing, Mr. Greer said, the two sides had not discussed chip export controls at the meeting.
China was firmly committed to producing advanced chips at home and views the U.S. tech industry as a threat to that effort, he said.
“If we are ahead of the game, like we are on A.I. chips, sometimes they feel that can stop their own growth,” he said.
Business
Iconic local burger chain celebrates 80th anniversary with 80-cent burger
One of Southern California’s most iconic burger chains is marking a milestone — and offering hardcore fans a one-day deal.
Original Tommy’s is offering an 80-cent chili burger on Friday as part of the Los Angeles staple’s 80th anniversary celebration.
“We’ve spent 80 years earning this moment,” the company wrote in a Facebook post announcing the deal. “The best gift we can give is the one you can eat.”
The deal will be offered at all locations from noon to 8 p.m. Customers will be limited to three of the sloppy burgers while supplies last.
The company will also offer live entertainment and giveaways at the original “Shack” stand on Beverly and Rampart Boulevard.
The chain started as a small stand in Westlake in 1946, where the founder, Tom Koulax, started selling burgers covered in his secret chili sauce.
The chain expanded slowly at first, opening five new locations throughout the 1970s.
Original Tommy’s is one of the few Southern California staples to remain regional, operating 32 locations in California and Nevada.
The chain has struggled to keep some storefronts afloat in recent years and closed the last San Diego location in 2023.
“I’m so proud of my dad for opening this business,” Diane Koulax, the founder’s oldest daughter, said on social media. “I’m glad you all enjoy our food that we make. We’re celebrating 80 wonderful years.”
Another Southern California burger giant, In-N-Out, also recently unveiled plans for a new Orange County location to open in late 2026. The location will be at an upcoming shopping center, The Canopy, in Irvine.
Original Tommy’s is still a family-owned chain and announced the anniversary celebration on Facebook. Koulax’s children, grandchildren and great-grandchildren thanked the chain’s customers.
“We appreciate you guys more than you know and can’t wait to keep serving you for years to come,” Victor Koulax, the founder’s grandson, who has worked at the company for 37 years, said on Facebook.
The chain has inspired dozens of knock-off restaurants, with similar names and chili offerings, across Southern California.
The imitation restaurants are a form of flattery, Bob Auerbach, the founder’s stepson, previously told The Times. The chain doesn’t allow franchising.
Business
In Qatar, Energy Sector Damage Is Severe, and the Way Back Will Be Long
In Doha, the stranded gas tanker Rasheeda has become a dark joke.
For more than two months, the vessel has drifted in circles in the Persian Gulf near the Strait of Hormuz, carrying the liquefied natural gas that serves as the lifeblood of Qatar’s economy. Residents track the ship on maritime apps and ask one another: “Where is Rasheeda today?”
The looping tanker has become a symbol of the paralysis gripping global energy supplies — a crisis that has cost Qatar billions in lost revenue and helped create energy shortages worldwide.
Qatar, one of the world’s largest exporters of liquefied natural gas, has seen its industry hobbled since war erupted in the Middle East nearly 11 weeks ago and Iranian strikes damaged critical infrastructure. Even facilities that remain intact have shut down because fuel cannot move through the closed Strait of Hormuz.
Since the war began, ships have tried just about everything to get out of the gulf, from calling in high-level diplomatic favors to hand-stitching Pakistani flags, hoping ties to the country mediating the U.S.-Iranian negotiations might secure safe passage.
During a week in Qatar, I interviewed more than a dozen people with knowledge of Qatar’s L.N.G. operations. Sensitivity in Qatar about the scarring of the energy industry is high. So most of the people requested anonymity to speak openly about QatarEnergy — the powerful state-owned energy giant that is the backbone of the economy. The details and observations about the state of Qatar’s L.N.G. industry stem from these conversations.
The consensus from these discussions was that even if the strait reopened tomorrow, Qatari L.N.G. exports would remain crippled for months and most likely impaired for years.
The biggest obstacle is technical. Replacement parts for infrastructure damaged by Iranian attacks can take up to five years to procure. At the same time, global shipping companies no longer trust the route through the strait, potentially leaving much of Qatar’s remaining exports stranded.
QatarEnergy did not respond to requests for comment.
The damage to Qatari gas infrastructure was inflicted in March, when Iran launched a barrage of drones and missiles at Ras Laffan, the country’s L.N.G. production hub. Most were intercepted, but three of the 20 projectiles penetrated defenses and struck L.N.G. trains — the massive liquefaction units that supercool gas for transport.
Rashid Al-Mohanadi, a former engineer who worked on one of the damaged units, remembered the night of the attack. Looking north from his home outside Doha, he saw the sky over Ras Laffan flash with interceptor missiles. The explosions rolled outward like shock waves, rattling the windows and doors of his house. When he stepped outside, the horizon was thick with black smoke.
“That was the moment I realized something had gotten through,” he said.
The facility was already largely idle because Iran had shut the Strait of Hormuz weeks earlier. Experts say the timing most likely spared the plant from further damage, as the lines were not operating under full pressure. Even so, Iran appeared to have hit what engineers describe as the “heart” of L.N.G. liquefaction trains.
The two heavily damaged units accounted for about 17 percent of Ras Laffan’s production. QatarEnergy has indicated that restoring full capacity could take three to five years. Some analysts believe that the estimate is high, but most agree that the recovery will take years.
The strikes appeared to have damaged the main cryogenic heat exchangers, precision machines that perform the final cooling of the gas and whose manufacturing is dominated by a single U.S. company, a unit of the conglomerate Honeywell. Replacement units can take four to five years to obtain.
The heat exchangers are a relatively small target within the Ras Laffan complex, which is more than twice the size of San Francisco, suggesting the strike was aimed at inflicting lasting damage.
Even for infrastructure that survived, getting fuel to market will remain difficult. Unlike the United Arab Emirates and Oman, which have coastlines on the Arabian Sea or Gulf of Oman, Qatar is uniquely vulnerable. All of its maritime infrastructure sits deep inside the Persian Gulf, leaving it without an alternative route to open water.
Roughly 1,600 vessels remain trapped near the Strait of Hormuz, carrying L.N.G., oil and fuel byproducts. After reports that Iran was allowing Pakistani-flagged vessels through, some crews stitched together makeshift flags from scraps of cloth found on board. It did not work.
For shippers, the danger will persist even if a cease-fire holds. Tehran has claimed to have seeded the waterway with undersea explosives. Until international mine-clearing units or Iranian authorities provide credible guarantees of safety, shipping companies are likely to be reluctant to risk their crews’ lives.
The Philippines, which supplies much of the world’s merchant-mariner work force, has begun directing crewing agencies to stop sending Filipino sailors into the conflict zone. Fears of further Iranian aggression and a lack of insurance coverage for such voyages threaten to keep vessels away. That leaves QatarEnergy in a bind.
Qatar cannot simply restart production until it secures commitments from shipping lines to return for new cargoes. If gas continues to accumulate with nowhere to go, storage tanks could overflow, forcing shutdowns that risk permanent damage. Because of that bottleneck, the entire export system is unlikely to return to normal for at least three to four months after the strait reopens.
The full extent of the damage is still unclear, but given the scale of the repairs required, “we’re talking reduced production until the end of the decade,” said Henning Gloystein, a managing director for energy at Eurasia Group, a political risk research firm. “It’s a significant tightening of the market.”
Even if the immediate crisis is resolved, many in the energy industry think that the Strait of Hormuz will not return to what it was. Support is growing for enormous infrastructure projects designed to bypass the strait, potentially redrawing the Middle East’s energy map.
One frequently discussed proposal is a pipeline across the Arabian Peninsula to a new liquefaction and export terminal in Jeddah on the Red Sea. Another would extend pipelines south to the Omani port of Duqm, allowing Qatari gas to be loaded directly onto ships in the Arabian Sea.
But pipelines carry geopolitical risks of their own. Relations between Qatar and Saudi Arabia — through which any overland route would have to pass — are warm now but scarred by a yearslong rift in which the kingdom cut off diplomatic and transport ties. Pipeline infrastructure is also vulnerable to missile and drone attacks.
For now, the immediate urgency is reopening the waterway itself. “Priority No. 1 is getting the strait open,” said Mr. Al-Mohanadi, the engineer who used to work at Ras Laffan. “Then it becomes about finding a mechanism to keep it open.”
After nearly a decade at a QatarEnergy-Exxon Mobil joint venture, Mr. Al-Mohanadi joined the Doha-based Center for International Policy Research as a vice president. He said one option was to create a multilateral maritime insurance “piggy bank” — a private and sovereign-backed fund that would insure ships transiting dangerous waterways such as the strait.
He also said there was growing pressure for Asia’s largest energy consumers to take a more active role in regional maritime security. For decades, the United States has served as the Gulf’s de facto guarantor, maintaining military bases across the region. Mr. Al-Mohanadi argues that the burden should increasingly be shared by Asian “middle powers” most dependent on Middle Eastern energy exports.
“We’re in a period of history where it’s a jungle, and that is threatening global energy security and entire economies,” he said recently over a late-night coffee at a hotel overlooking the waters off the northern tip of Doha Bay.
Near the end of our conversation, Mr. Al-Mohanadi opened a maritime tracking app on his phone. He typed in “Rasheeda,” and out emerged a rendering of the tanker, still endlessly circling the gulf. “Poor Rasheeda,” he said, looking down at the screen. “At this point, she must be so tired.”
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