Inflation is rising, and the feds are planning a rate increase, but it’s not because the Iran war - AI data center spending is the cause

[Saltwater60]

I found this very interesting. They claim the Feds will raise the interest rate because inflation. I expected this and they have been talking about it for a while now. Many think the Iran war is the cause of inflation, but CNN is claiming it’s because of the out of control spending to obtain materials and workers to build AI data centers.
I thought this was very interesting timing from CNN and bucks the democratic establishment on why costs are rising. Thought? It makes sense to me.

https://www.cnn.com/2026/09/14/economy/federal-reserve-ai-inflation-rate-hike

 

[Cavalry]

I call bullshit on this excuse. Data centers are planed, bid and constructed months to years in advance of being operational. This would cool off data centers 2 years from not but not ones in the process

 

[spat]

I call bullshit on this excuse. Data centers are planed, bid and constructed months to years in advance of being operational. This would cool off data centers 2 years from not but not ones in the process

Private spending doesn't cause inflation. Only government spending can do that.

Every dollar spent on a datacenter was pulled out of the economy somewhere else, so no net inflation.

 

[Saltwater60]

Private spending doesn't cause inflation. Only government spending can do that.

Every dollar spent on a datacenter was pulled out of the economy somewhere else, so no net inflation.

I don’t agree with that.
Government spending isn’t the sole cause of inflation. Minimum wage increases, energy prices increase, and shortages of other supplies can do that. This is what is causing the increases of inflation.
Workers to build these are short so they are paying an increase in wage. That wage increase causes increased spending power possibly causing shortages and increase in costs to other.
Materials to build data centers are in short supply. Them using these resources cause an increase in the shortage causing prices to rise for all other.
Construction equipment uses a lot of energy causing the price to increase. Price increases from energy ripple out to all goods and services causing inflation to rise.

 

[Plater1]

I don’t agree with that.
Government spending isn’t the sole cause of inflation. Minimum wage increases, energy prices increase, and shortages of other supplies can do that. This is what is causing the increases of inflation.
Workers to build these are short so they are paying an increase in wage. That wage increase causes increased spending power possibly causing shortages and increase in costs to other.
Materials to build data centers are in short supply. Them using these resources cause an increase in the shortage causing prices to rise for all other.
Construction equipment uses a lot of energy causing the price to increase. Price increases from energy ripple out to all goods and services causing inflation to rise.

We have had a dramatic jump in govt spending since Covid. That's why inflation took off in 21'. The recent jump in the price of Diesel is only making matters worse. Nearly everything we buy has been delivered by truck, train, airplane, or ship. They all run on various forms Diesel. The spending on data centers comes from banks and private funding. They are are running out of money. That's a whole different problem. On the brite side when the AI boom goes bust and the global economy takes a crap the price of Diesel will come down.

 

[spat]

I don’t agree with that.
Government spending isn’t the sole cause of inflation. Minimum wage increases, energy prices increase, and shortages of other supplies can do that. This is what is causing the increases of inflation.
Workers to build these are short so they are paying an increase in wage. That wage increase causes increased spending power possibly causing shortages and increase in costs to other.
Materials to build data centers are in short supply. Them using these resources cause an increase in the shortage causing prices to rise for all other.
Construction equipment uses a lot of energy causing the price to increase. Price increases from energy ripple out to all goods and services causing inflation to rise.

But inflation only happens when the money supply increases or the supply of goods decreases.

And it's only inflation when it's across the whole economy.

Only the government can increase the money supply. Everybody else just takes it from one pocket and puts it in another.

Those materials are in short supply, sure. And supply and demand will make that price rise because of that.

But the money that's being spent on them is coming from somewhere else, so no net inflation. All the expenses in one sector come from revenue in another one, unless you're the government.