Welcome to the third episode of the Stepchange Show—where we explore the technologies and systems that have transformed human civilization.

Every time you stream a movie, send a text message, scroll a feed, or chat with your favorite AI, you’re touching an invisible, physical empire. We call it the cloud, but it isn’t in the sky. It is astonishingly physical—alive in over 12,000 buildings around the world, consuming almost five percent of U.S. electricity, and running through cables laid across the ocean floor.

This is the story of data centers. From the humming punch-card rooms of the 1930s to the Cold War projects that accidentally birthed the internet, and onward to the gigawatt-scale AI factories of today, data centers have quietly become the industrial engine of our era. Six companies—NVIDIA, Microsoft, Apple, Alphabet, Amazon, and Meta—now dominate global markets in part because they command this infrastructure, just as railroads, steel, and oil once defined the fortunes of the last century.

Data centers are the machines behind the modern world. They shape commerce, media, communication, and now artificial intelligence, and raise profound questions about energy, water, and climate.

Join us as we uncover the physical reality of our digital world.Four main parts:

Part I — Early Mainframes and the Birth of the Internet - 00:00:00

Part II — The Utility of the Cloud and the Hyperscalers - 01:16:13

Part III — The COVID Acceleration + AI Frenzy - 02:32:48

Part IV — Themes & Reflections - 03:40:10

Thank you for joining us for the third episode of Stepchange. Don’t forget to subscribe.

Hosted by Ben Shwab Eidelson and Anay Shah. We would love to hear from you at hi@stepchange.show.

Full chapter times:

00:00:00 - The Invisible Empire of Data Centers

00:03:11 - IBM Punch Cards: The First Nerve Center

00:17:12 - SAGE: Connecting the Mainframes

00:27:27 - The APARNET: The Cold War Births the Internet

00:49:15 - The .Com Boom: The World Gets Wired

01:16:13 - AWS: The Utility of the Cloud

01:36:25 - Google: Warehouse Scale Computers

01:58:28 - Microsoft: From Software to Services

02:18:19 - Facebook: Sharing the Blueprints

02:32:48 - COVID: Five Years of Growth in 18 Months

02:45:53 - AI: The Dawn of the AI Age, Powered by NVIDIA

02:53:46 - Power & Water: The Gigawatt Problem

03:10:48 - Chips & Data: The New Cold War

03:19:18 - Climate: The Emissions of Data Centers

03:33:43 - Present Day Scale: Compute, Storage, and Communication

03:40:10 - Themes: Our Takeaways and Reflections

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit stepchangeshow.substack.com

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