Issue Technology: frontier constraints become technology constraints

Summary

In the technology sector, EY argues, the limits of the resource frontier are turning into limits on technology itself. Billions in research spending are driving a rush in space technology, from low Earth orbit constellations to quantum data centre hubs. Yet competition for rare earths raises geopolitical tension and infrastructure costs, and growth is increasingly held back by the availability of power rather than by compute or raw materials. Geopolitical interference creates supply chain bottlenecks, and firms have limited ability to pass higher costs on to customers, which strains capital. If these constraints persist, EY warns that control of AI and quantum computing infrastructure could concentrate in a small number of well-capitalised organisations.