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Davis, from Disruptive, cautions against the 'build it and they will come' strategy for data centers, predicting a financing crisis in 2027-2028 for speculative landlords. His firm recently invested in AI chipmaker Groq, which secured a $20 billion licensing deal with Nvidia, and has backed startups like Reflection AI, Shield AI, and Gecko Robotics.

Davis believes that the rapid expansion of data centers will create excessive stress on the system and notes that these facilities are becoming contentious due to their influence on electricity prices. The investment community is increasingly scrutinizing these developments.