Comparison with the network distribution properties of other utility technologies does not help resolve this either: households may burn their own gas for heating (at least for now), or rely on district heating, or some remote wind farm (or nuclear reactor). Water provision is typically fully centralized in cities but not so in agriculture.
Without proof, intuitively it feels that "hyperscalers" is a bad design for society and environment. Silicon should be as decentralized as realistic...
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