Markets have spent much of the past two years asking whether demand would finally weaken. Would consumers slow? Would higher interest rates end the artificial intelligence investment boom? Would expensive equities eventually lose support? Would oil demand collapse under the weight of higher prices?

Those questions still matter, but they are no longer the most useful way to understand the current market. A potentially more important constraint is increasingly capacity.

The world has no shortage of demand for compute, but it does have a shortage o...