The dot-com colocation boom and bust (1999-2001)
Colocation providers like Exodus Communications raised billions to build data centers on leased property and optimistic demand projections during the dot-com boom. When the bubble burst, demand collapsed and Exodus filed for bankruptcy in 2001.
Massive overcapacity and a wave of bankruptcies in the colocation sector.
The industry consolidated into a few large operators, and financing terms for data center construction tightened.
WhiteFiber's bet is that AI demand will sustain. The dot-com bust shows what happens when data center capacity outruns actual customer demand.
