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AI data center buildout could keep inflation pressures elevated
CNBC reports that slower corporate adoption of AI, alongside ongoing data center construction, may add to inflation pressures even as some tech leaders argue AI could reduce costs.
Tech leaders argue artificial intelligence could lower costs over time, but CNBC reports that a costly wave of data center buildouts and slower corporate adoption could complicate the inflation outlook for the Federal Reserve.
The outlet says these dynamics create near-term inflation pressure, even if some businesses ultimately benefit from lower operating costs as AI usage expands.
CNBC frames the issue as a challenge for the Fed, because the path of AI related spending may offset expected disinflation benefits for a period while data center construction continues.