The real problem with data centers: Their buildout costs are driving up interest rates.

Curly1918 18474 posts Joined: Aug 30, 2017

Posted 9:11 am on Aug 20, 2026

This is now as much a drag on the bond market as is the government.

I wonder how he Chinese are dealing with this?

Link: https://www.cnbc.com/2026/07/24/bond-market-anxiety-ai-capex-spending.html?msockid=1cf4c1b8598663c129fdd69a589562d9

Replies 23

The real problem with data centers: Their buildout costs are driving up interest rates.Link Curly1918 9:11am · 8/20/26
- Socialized risk & cost with privatized gain. Pass.NT LanceManion 8:56am · 8/21/26
- I think the proper way to think about data centers is like utilities or infrastructure.NT iairishcheeks 3:38pm · 8/20/26
  - I think the proper way to think about data centers is how much useful AI we can make per $, per kwh Eli 11:36pm · 8/20/26
    - How much energy is spent on cat videos and other silliness? iairishcheeks 12:56pm · 8/21/26
- Chinese don’t have this issue. China and U.S. have different routes in developing AI. Eli 3:02pm · 8/20/26
- And the burgeoning use of Credit Default Swaps by Hedge Funds isn't music to the ears of "Free Cash TyroneIrish 2:54pm · 8/20/26
  - Just as with all the subprime mortgages at the time of the 2008 crash, there shall be serious losers Curly1918 4:15pm · 8/20/26
    - And most egregious are those who seek $1.5T Defense Expenditures, while giving Tax Breaks to those TyroneIrish 4:50pm · 8/20/26
- Good grief - stop already Nigel Tufnel 1:54pm · 8/20/26
  - I tend to agree. I also look at who is against data centers - that always help clarify things when BaronVonZemo 5:35pm · 8/20/26
  - I'm still trying to figure out the fear of datacenters. NedoftheHill 3:37pm · 8/20/26
    - So, data centers = AI. iairishcheeks 9:30pm · 8/20/26
      - So, stopping AI is as simple as stopping data centers. Good to know.NT NedoftheHill 12:39am · 8/21/26
        
        Obviously, AI runs on computers.NT iairishcheeks 12:59pm · 8/21/26
    - The objections are rooted in the distain that datacenter builders have for local communities...odd TyroneIrish 5:04pm · 8/20/26
      - I know exactly who you meanNTLink Curly1918 6:07am · 8/21/26
    - There are Luddites in every generation. The bigger problem is that so many do not fear debt. Curly1918 4:06pm · 8/20/26
      - Yes. And anyone who looks at the issue knows we can only reduce debt by inflating the dollar. NedoftheHill 4:38pm · 8/20/26
        
        Without AI I think we'd be in a recession or perhaps a depression. iairishcheeks 9:32pm · 8/20/26
        
        At least as the stock market measures those things.NT NedoftheHill 9:25am · 8/21/26
  - A mere $1.4 Trillion... can't possible impact credit markets. Right?Link Curly1918 2:18pm · 8/20/26
    - That's a bit misleading Nigel Tufnel 7:02pm · 8/20/26
      - Long term I totally agree.Link Curly1918 10:26am · 8/21/26

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