Nvidia CEO rebuts data center backlash, says buildout can cut costs
Nvidia's Jensen Huang said AI data centers can lower energy costs, citing market forces. Nvidia's data center revenue hit $89B. Texas imposed a moratorium on new construction.
Alpha Score of 70 reflects strong overall profile with moderate momentum, moderate value, strong quality, moderate sentiment.
Nvidia CEO Jensen Huang acknowledged Wednesday that the technology industry must do a better job convincing communities to accept AI data center construction. Speaking to CNBC's Jim Cramer, Huang said the buildout can reindustrialize the nation and lower energy costs.
A study by researchers at the Massachusetts Institute of Technology found that data centers that shift power consumption to off-peak hours could lower average energy costs by up to 4% in the Mid-Atlantic and 5% in Texas. In 11 western states, the reduction was 2%. The caveat: under some scenarios, data centers would need to shift nearly 50% of their consumption to non-peak hours.
Nvidia reported Wednesday that data center revenue totaled $89 billion in the second quarter of fiscal 2026, up 117% from a year ago. The figure beat Wall Street estimates. Nvidia's Alpha Score is 73 out of 100, labeled Moderate, at a current price of $226.10.
Despite the industry's growth, public backlash is mounting. Texas Gov. Greg Abbott imposed an effective moratorium on new data center construction until state agencies complete an audit.
Huang warned that the US risks falling behind if it does not embrace the technology.
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