Also, something else to add. At first I thought no one wants to build data centers in hotter areas in the middle of deserts (many places in the American continent). So nobody would spend money building a data center in the Chihuahuan Desert for instance. However, a game of latencies will either require cover llm access from these areas, or make people move closer to the other data centers. In the former, llm prices will go up; in the latter, there will be a migration towards data centers that increase the price of the areas around.

Who cares about a few ms more latency on an LLM API? Maybe for voice, but most other use-cases are quite latency insensitive.

They are building data centers in the Chihuahuan Desert right now. Meta has a huge one planned right outside El Paso.