Minnesota Star Tribune columnist compares growth of AI and data centers with expansion of broadband in 2000. He starts with the history…

Everyone in business these days seems to be searching for a tale from history to meaningfully describe the growing importance of AI. I personally think it will transform the way people work with their digital devices and information. But we’re at a very confusing time in its development.

So the tale in history I’m going to invoke comes from the late 1990s and early 2000s: the time when the internet was in its hockey-stick period of fast adoption.

The buildout of the commercial internet had enormous effects on company valuations, but also on the nation’s physical environment, just as AI now does. Many people have forgotten how much the nation was ripped up to build what was initially called an “information superhighway” but eventually became known as the broadband network.

In July 2001, the longtime tech writer of the Star Tribune, Steve Alexander, wrote, “The information superhighway is getting wider in the Twin Cities.” He then described plans to lay fiber-optic lines along Interstate 94 and Interstate 35E in St. Paul — at a cost of around $10 million.

How quaint that seems when set against the multibillion-dollar expense of a single data center in 2026.

And talks about what he sees today…

Today, I’m very reluctant to say AI is being overhyped or overbuilt. And I wouldn’t even try to predict the effect AI will have on jobs and the environment.

AI may very well turn out to be overinvested in, however. The entire case for massive data centers may be overturned by an advance in software programming or by the decentralization of processing power as chip technology advances. AI companies’ debt loads may become too much to bear, even if the companies turn fabulously profitable. I remember stories about broadband buildouts appeared not long before a big crash in internet-related stocks.

The commercial internet did justify its investment, despite the bursting of an initial bubble that wiped out billions in shareholder value.

At the moment, however, the numbers on AI investments are jaw-dropping, even if you’ve got the mouth of a hippo.