Infineon forecasts continued AI data center boom despite resistance in the US

A forecast amid resistance

German chipmaker Infineon said on Tuesday, November 10, that the rapid construction of data centers for artificial intelligence will not slow down, despite growing resistance in the United States — while the company acknowledges that such a backlash is likely to spread to other countries as well. This was reported by Euronews (the English and Russian versions of the article describe the same appearance).

What is happening in the US

In the US, opposition to the environmental and energy costs of large data centers has intensified: many Democrats who won the recent midterm elections have promised to slow down these projects. Infineon CEO Jochen Hanebeck, at a conference following the reporting period, acknowledged the 'growing debate about the expansion of AI infrastructure,' but called it 'rather a topic specific to the US'. According to him, the concerns are voiced by people living in close proximity to the centers, but the world has 'many regions with very low population density.' He expects operators and American hyperscalers to build facilities not only in the US but also in other countries, and called regional diversification 'a good trend.'

Financial results and the company's role

Infineon reported revenue growth of 12% for the fiscal year that ended in September and forecasts sales growth of up to 20% in the current year thanks to demand from AI data centers. The company does not produce the AI processors themselves, similar to Nvidia's designs, but supplies power chips that help deliver electricity from the grid to such facilities. Hanebeck called AI 'the key driver of our growth and profitability' and stated that 'AI delivers real benefits, and its importance will only grow.'