Citi says advances in AI models are running ahead of the infrastructure and enterprise deployment needed to turn those capabilities into financial returns. Investing.com reported the assessment on October 9, citing a research note from the bank.
The coverage highlighted local community support as an increasingly important factor in keeping data center projects on schedule. The issue echoes the U.S. backlash against construction, where concerns about electricity, water and local benefits have spread across political lines.
Costs are also rising. Investing.com cited First Citizens figures putting turnkey data center shell costs at $12 million–$14 million per megawatt, compared with $8 million–$10 million in 2018–2020. Those figures describe construction costs, rather than the full cost of an AI deployment.
A separate Citi Institute report, published September 14, illustrates the enterprise challenge. Nearly 60% of surveyed organizations remained in exploration or pilot phases, while only 40% had reached production or scaling. Access to stronger models alone was not the main differentiator identified by interviewees.
Among respondents already in production or scaling, 60% reported value creation exceeding 15% through productivity gains, cost efficiencies or revenue growth. The findings are self-reported outcomes, not guaranteed returns. Citi’s interviewees emphasized proprietary data, organizational expertise and successful execution as sources of competitive advantage.
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