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I don't think you know, if this is something that's shortened, it doesn't change. Obviously it's prolonged then it becomes a bigger, you know, issue relative to demand. Look, I think the more immediate Middle East which going to be, you know, out really outside of US and China. That was going to be one of the biggest areas in terms of data center builds, UAE, you know, in terms of everything going on in Saudi.
You know, Nvidia is going to be a huge player there as well as US tech. But I just think broadly it speaks to like, look, this is the demand trend that's not stopping based on the geopolitical. But it's a risk-off environment relative to tech. So I would almost view it as it's much more disconnected relative to what's happening in the stocks to the actual demand.
We saw that in Nvidia this week, saw that Palantir last week. And I think it continues to be especially in software, the sell-off here continues to be massively disconnected from what I believe the ultimate narrative will be. That will be the hearts and the lungs of the AI revolution. Hey Dan, great conversation with Karen there.
But I just can't help worrying that the the math is getting more tricky for a lot of these, if nothing else, that the the the data center providers, the hyperscalers, because the cost of energy is something that was underestimated originally. Now it is fully understood by people who've been following you and others.
The cost of energy for building these. Well, the cost of energy globally has just gone through the roof, not just for US consumers and those shipping um kit around. It's for the data centers as well. That's going to have an impact, isn't it? Oh, yeah. Look, uh it all comes down to like, if this is a conflict, a war that that ends in, you know, 3-4 weeks, it's something that has a dent, but in the long term doesn't really play a huge impact relative to data center build-out and demand.
If it's prolonged into, you know, coming months, spring, summer, you know, then it's really a much different game because, [clears throat] you know, you hit on what what's the main point. We've talked about the energy shortage is the biggest constraint for the AI revolution. There's more data centers under construction today than active data centers.
And that's going to be something It's a boom time in the energy players, but it's also constrained because big tech, they're going to have to pay their own bill. And that's something administration's talked about especially as you continue to see this play out. Dan, just to pick up on Steve's point, it's not just the energy prices that have gone up, increasing costs for these energy-hungry data centers.
The interest rate picture looks like it could be very different from when all of these hyperscalers announced the vast sums that they will be investing. How much do you think the possible hike in some cases in interest rates could affect the direction of travel with all this? Yeah, look, I think I mean a lot of these tech companies have you put together about a trillion dollars in the balance sheet.
You know, so so they don't necessarily need it. Now, look, if you look at Oracle and others in terms of raising debt, you're going to see more tech companies have to raise debt because of the build-out. So it does speak to, you know, this sort of puzzle that's being put together. You need to ultimately see lower rates over the coming year.
You need to see a better market relative, you know, for tech players in terms of raising money. You don't want to see energy prices go higher because, look, then you take a step back. $4 trillion going to be spent in terms of the build-out. Even in tech today, $700 billion, those checks are basically already written.
And the multiplier effect's going to continue to play out. So you have almost two worlds playing out in terms of the tech boom, the the demand, the fourth industrial revolution, but then the energy shortages and just the overall market. It's a it's a white-knuckle moment that we are going through in the tech trade.
You see that play out every day. Dan, we promised to come back to you on some of your calls on cybersecurity. You've got a big conference coming up and you point out that AI is reshaping the space. How do we need to think about cybersecurity? Yeah, I think I in next week RSA security which will be our biggest cybersecurity conference in the world.
Look, I think it speaks to this massive disconnect between software and I think cybersecurity and we'll call it AI. There's a lot of It's almost an AI ghost trade that's going on. And I think when you look at names like CrowdStrike, Zscaler, Check Point, Palo Alto, they are going to play epicenter roles in this AI build because the threat nature is going to continue to increase.
That's not something that's going to be done by L M and Anthropic and others. Look, in a lot of this white-knuckle moment, there are opportunities. I think probably some of the biggest opportunities in software from a stock perspective are in cybersecurity. I think there could be a golden opportunity there as that plays out.
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