Personal Finance Topics / Macroeconomic Trends and Risks
No. of Recommendations: 6
https://www.nytimes.com/2025/09/20/business/dealbo...
What Wall Street Sees in the Data Center Boom
Data center capacity has become a barometer for both the health of the tech market and the risk of an A.I. bubble.
By Ian Frisch, The New York Times, Sept. 20, 2025
Trillions of dollars are flowing into the data centers needed to power artificial intelligence, and Wall Street is paying close attention….
U.S. data center demand, driven largely by A.I., could triple by 2030, according to McKinsey, which would require data centers to make nearly $7 trillion in investment to keep up….
The spending frenzy comes with a big default risk. According to Moody’s, structured finance has become a popular way to pay for new data center projects, with more than $9 billion of issuance in the commercial mortgage-backed security and asset-backed security markets during the first four months of 2025….
Even if A.I. proliferates, demand for processing power may not. The Chinese technology company DeepSeek has demonstrated that A.I. models can produce reliable outputs with less computing power. As A.I. companies make their models more efficient, data center demand could drop, making it much harder to turn investments in A.I. infrastructure into profit…. [end quote]
There’s more in the article about lost tax revenues, pressured power grids and water.
Here’s a really good article about the skeptical perspective.
https://pracap.com/global-crossing-reborn/?utm_cam...
Praetorian Capital – 20 Aug 25
Global Crossing Is Reborn...
I’ve been at this investing game a long time. Long enough to see cycles repeat themselves, cycles that I literally thought I would never again see. Yet in finance, everything repeats. You just need to keep your discipline and recognize things for...
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What will happen to the big tech companies if AI doesn’t generate enough cash flow to pay off the debts?
Wendy
No. of Recommendations: 0
What will happen to the big tech companies if AI doesn’t generate enough cash flow to pay off the debts?
Bailouts by the govt. Fake claims will be: Govt needs it, Economy needs it, Military needs it, and so on.
No. of Recommendations: 0
Trillions of dollars are flowing into the data centers
Except per year, it is not close to $1 tr, never mind trillions.
No. of Recommendations: 0
Bailouts by the govt.
Jerry et al,
Uncle Sam is bankrupt. The taxes won't go up.
No. of Recommendations: 0
Uncle Sam is bankrupt. The taxes won't go up.
That does NOT stop the spending. Federal taxes may not go up, but local and state taxes SHALL--because they do NOT have the ability to spend more than they receive in total revenue. Major cuts to federal transfers to states and local govts will force tax increases AND job cuts as well.
