Transportation
AI Data Center Boom Risks Roiling Global Carmaker Supply Chains
An employee works on an electric vehicle at Rivian's headquarters in Irvine, California.
Photographer: Alisha Jucevic/BloombergThe auto sector is bracing for yet another potential supply chain disturbance, this time spurred by the rush to build data centers that train and develop artificial intelligence models.
A shortage of memory chips caused by the data center boom already is leading some industry participants to acknowledge more than 100% price hikes, UBS analysts led by David Lesne wrote in a report Tuesday. Disruptions could kick in starting in the second quarter, he warned.