Jim Cramer Compares AI Data Center To IPO Frenzy, Warns Boom May Be Unsustainable: ‘It All Has To Slow Down…’

by | Dec 16, 2025 | General

Jim Cramer, the host of CNBC’s “Mad Money,” expressed his concern about the rapid pace of data center and utility station construction in a recent post.

Cramer Flags Data Center Boom

Cramer took to X on Monday to compare the current pace to the frenzy surrounding hot IPOs, pointing out that major tech companies like Open AI, Meta Platforms (NASDAQ:META), Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN) are all vying for a significant share of the market.

He wrote, “We just can’t build all the data centers and utility stations we need. It all has to slow down… “

See Also: Nvidia’s Depreciation Time Bomb: Jim Chanos Warns Of ‘Massive Financial Risk’ For CoreWeave, Oracle

Experts Divided Over Data Center Construction

Cramer’s post also underscores the increasing demand for data centers and utility stations, a demand that is being driven by the rapid growth of the tech industry. This growth has been further fueled by major deals and expansions, such as Google’s recent $6.4 billion investment in Germany for AI and data center expansion.

However, some industry leaders advocate for more data center construction in the U.S. For instance, investor Kevin O’Leary recently warned that the country is falling behind China in data center construction due to slow permit approvals.

Nvidia CEO Jensen Huang also echoed concerns about U.S. infrastructure delays, saying it takes about three years to build a U.S. data center into an AI supercomputer, while China can construct major facilities like hospitals in a single weekend, underscoring China’s faster execution and efficiency.

Analysts have also pointed out that the fundamental drivers of AI growth will be data center expansion and access to power, rather than financing schemes. This indicates that the pace of construction is a critical factor in the industry’s future growth.

READ NEXT:

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.