Data centres may one day be rendered obsolete by the smartphone, according to Perplexity CEO Aravind Srinivas, who shared the idea during a recent podcast appearance.

Speaking with host Prakhar Gupta, Srinivas suggested that future users will rely on powerful, highly personalised AI systems capable of running directly on the hardware inside their own devices. In this model, AI would no longer depend on sending data back and forth to vast, remote data centres to operate, as it largely does today.

Some early signs of this shift are already emerging. Apple’s AI platform, Apple Intelligence, performs certain functions on specialised chips built into the company’s latest devices. Apple says this allows AI features to run faster while keeping sensitive user data more secure. However, these capabilities are currently limited to premium products, and most consumer devices lack the processing power required to support advanced AI locally.

“Local AI at scale remains a long-term prospect,” said Jonathan Evans, director of consultancy Total Data Centre Solutions. “It’s an ‘if and when’ scenario that depends on AI becoming both powerful and efficient enough to run on everyday devices.”

For now, demand for data centres continues to grow. While the industry is not shrinking, questions remain about whether it could evolve in form rather than size.

Traditionally, data centres are massive facilities filled with high-performance computers that support a wide range of digital services beyond AI, including video streaming, online banking, data storage, and cloud computing.

Meanwhile, other technology companies are also experimenting with on-device AI. Microsoft’s Copilot+ laptops, for example, include hardware designed to handle certain AI tasks locally, reducing reliance on remote servers.