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Much of the early momentum was driven by hype.
Selling off GPUs
Location is also a problem,MIT Technology Reviewnotes.
Facilities built in central and western China, where electricity is cheap, now face issues meeting latency requirements.
In some regions, developers began selling off GPUs after failing to secure long-term clients.
It seems like everyone is selling, but few are buying, he noted.
Despite the oversupply, the Chinese government reportedly remains committed.
For many early data center investors however, expectations have collapsed.
The infrastructure was built, but the demand it was meant to supply simply hasnt arrived.
