Everything has been cut to the bone so any blip in demand cannot - at any price - be effectively responded to. Even if you were exceptionally good at being able to double internal capacity, the supply chain all the way from raw materials to skilled labor pool your vendors may need just isn’t there.
This latest datacenter bubble is just the last and most acute symptom of this problem I’ve noted in my lifetime. Hyper-financialization does that to an economy.
The best anyone can do is outbid peter to rob paul.
- most capital-intensive manufacturing process ever invented
- lead time for expansion is several years
- demand that is highly uncertain on a timescale of months
- technology that goes rapidly obsolete
Unless one of these factors changes, it essentially guarantees that semiconductors will have the highest price volatility of any manufactured goods. As they have since the 1980s.
But it's way more than just chillers. It's everything from structural steel, to electrical transformers, copper cabling, optical transceivers, electric generation, skilled workforce in the trades, etc.
Overall this boom has been relatively tiny as far as US industrial booms historically have been, and we cannot ramp up production even if there was the political will to do so.
It's not just datacenters. Look at the military industrial supply chain these days. We can't even scale up WWII era artillery shell production in any reasonable timeframe. Much less modern weapons systems.