this post was submitted on 02 Jun 2026
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It's not a question of how good or bad the LLM is, it's a question of watt hours and bandwidth. It takes a certain amount of electricity to run so your prices and profit margins are directly correlated with the price of electricity.
LLMs run out of data centers with cheap electricity and cheap bandwidth are going to be the cheapest ones on the market. For electricity this would typically be places with cheap renewables nearby like large hydroelectric plants. Bandwidth is a little trickier as there's not as obvious an indicator of where bandwidth is cheap and plentiful but typically it's going to be near major population centers. Putting those together there's probably only a small handful of locations in the world where it's economically viable to run these data centers.