Thursday, November 6, 2025

How A.I. Computing Power Creates Economic Divides

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The Global AI Divide: Who Holds the Power?

A seismic shift is occurring in the world of artificial intelligence (AI), where the distribution of computing power has created an unprecedented digital divide between nations. While the United States, China, and the European Union spearhead advancements with cutting-edge AI data centers, much of the rest of the world lags significantly behind.

Sam Altman, CEO of OpenAI, recently visited a construction site for a massive AI data center in Texas, an initiative that is expected to cost around $60 billion and become one of the world’s most powerful computing hubs. In stark contrast, Nicolás Wolovick, a computer science professor in Argentina, operates an A.I. hub out of an aging classroom, highlighting the disparity in resources and capabilities.

The Growing Gap

According to research from Oxford University, only 32 countries, or around 16% of the global population, host the advanced data centers required for AI development and deployment. The United States alone operates 87 such centers, representing almost two-thirds of the global total. Chinese firms follow with 39, while European countries manage just six.

This concentration of resources has tangible repercussions on a global scale. AI systems, including popular applications like chatbots, are significantly more proficient in English and Chinese—languages tied to countries that dominate the data center landscape. This linguistic bias extends beyond mere user experience; it affects scientific progress, talent retention, and economic stability.

The Impact of Geopolitics

The stakes are high as nations scramble to gain access to essential AI infrastructure, leading to shifting geopolitical alliances. “Oil-producing countries have had an oversized influence on international affairs,” stated Vili Lehdonvirta, an Oxford professor. “In an AI-driven future, compute producers could wield a similar power.” Countries with limited AI capabilities face challenges in scientific research and innovation, making them reliant on foreign tech giants.

In regions like Africa and South America, the absence of advanced computing capabilities raises alarm bells. “Everything is becoming more split,” Dr. Wolovick lamented, underscoring the feeling of loss within nations striving to minimize their technological lag.

A Race for Resources

Governments in developing countries recognize the urgency of investing in local AI infrastructure. Initiatives are underway across Africa and Latin America to upgrade technological capabilities. Brazil, for example, has earmarked $4 billion for AI projects, while India aims to subsidize AI model development in native languages.

Countries are also racing to establish AI hubs that can serve their regional needs. Microsoft and OpenAI are co-developing a data center in Kenya, reflecting a growing recognition of the importance of “sovereign AI”—local systems tailored to regional demands. Yet, this ambition faces significant hurdles: many areas lack reliable electricity, skilled labor, and adequate funding.

Local Startups Against All Odds

The constraints faced by local startups attempting to harness AI are palpable. For instance, Qhala, a Kenyan AI startup, is developing a large language model focused on African languages but depends on data centers thousands of miles away, significantly impeding its progress. Shikoh Gitau, the company’s founder, emphasizes the need for nearby computing power, stating that “if you don’t have the resources for compute to process the data, then you can’t go anywhere.”

American tech giants’ significant investments further exacerbate the divide. This year, Amazon, Microsoft, and Google have pledged over $300 billion to AI infrastructure, dwarfing the combined resources of many developing nations. Brad Smith, Microsoft’s president, acknowledged that while many countries seek autonomy through computing infrastructure, the road ahead is fraught with challenges.

A Call for Action

As the landscape continues to evolve, drastic measures are necessary to close the existing AI gap. Investing in local talent, creating regulatory frameworks, and forming international coalitions are critical steps for less-developed nations. A roadmap must be carved out that allows them to cultivate their own technological environments, without becoming subservient to dominant powers.

The call for equity in AI deployment is clear. As Hardy Pemhiwa, CEO of Cassava, succinctly stated, “We absolutely have to focus on ensuring that we don’t get left behind.” With continued investment and cooperation, there exists a pathway to bridge the divide and democratize access to AI capabilities that could drive economic and social change globally.

Works Cited

  • Oxford University research on AI data centers
  • Statements from Sam Altman, Nicolás Wolovick, and experts in the field
  • Information from The New York Times and various international publications on AI investment and infrastructure development in developing nations

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