The primary bottleneck for expansion is the availability of 'powered shells' (energized data centers), a complex constraint involving power grids, supply chains, and skilled labor.
Enterprises are experiencing 'sticker shock' from uncontrolled AI spending, which could lead to budget pullbacks or a pause in adoption while ROI is assessed.
Potential for political and community opposition to new data center construction could slow down development in key regions.
Opportunities Identified
Demand for AI compute from AI labs, enterprises, and financial services is 'unrelenting' and growing.
The long useful life of GPUs (6-8+ years) improves the economics and financing of AI infrastructure.
CoreWeave's success-based CapEx model, where infrastructure is built only after securing long-term client commitments, de-risks expansion.
Diversification of the customer base into enterprise and financial services creates a more stable and predictable revenue stream.