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Nvidia says AI data centres waste up to 40 percent of power as electricity emerges as key constraint

AI data centres are using about 40 percent of electricity inefficiently, according to a report citing Nvidia. Nvidia said power bottlenecks could become a bigger constraint than chip shortages. It said up to 70 percent of grid power is used for AI computing, with the remainder lost to infrastructure operations and inefficiencies. Nvidia and Vertiv are jointly designing next-generation data centres from early 2026, aiming to reduce losses and improve efficiency per unit of power.