Yes it seems very dangerous. Also, I think a lot of the software we use today, we don't need or we could make much more efficient. We almost certainly don't need so many data centres. Most businesses could self-host their own systems. Even a lot of large companies.

I feel like we probably only need a tiny fraction of the compute capacity if we let things be decentralized and let the market operate naturally.

This was my thought years ago and so now it looks blatantly obvious to me with AI data centres driving electricity prices. It's pretty clear the industry is being propped up by other parts of the economy.