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One of the reasons self-hosting is not sustainable in Germany is that electricity is prohibitively expensive for non-industrial purposes. If you run a service company and do not own a data center, you pay more for the electricity than the equivalent in token costs overseas or in China.

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I think since electricity costs are the most important facet of the margins, and the cheapest electricity source is solar, this means the largest inference providers will run massive photovoltaic parks.

Not sure if anybody wants to combine the CAPEX risk of running a cloud business and the CAPEX risk of building out the massive capacities of solar, plus lease for the land, plus managing electricity backups for cloudy days.

Vertical integration, amirite?

You still can use EU-Hosted Opensources models like from Tensorix.

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