this post was submitted on 14 Oct 2026
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Federal Reserve Says AI Data Center Buildout Is Making Everything More Expensive: "I’m getting increasingly nervous that that’s just straight, old-fashioned overheating demand." (futurism.com)
submitted 19 hours ago by eicker@lemmy.world to c/technology@lemmy.world
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[–] CompactFlax@discuss.tchncs.de 9 points 11 hours ago

I think that’s exactly right.

Paul Kedrosky was on Zitron’s podcast some time ago and said that he’s not sure that the return on the datacentres will be enough to pay for interest on the debt issued to build them - and it’ll never pay back the original capital. That should scare everyone. He also talks about how the bond markets - including USA bonds - are affected by the sheer size of AI debt. It’s quite worrying.