Inflationary pressures spread as investment in AI data centers surges
According to FactSet data, this year’s capital expenditure by hyperscalers including Alphabet, Amazon, Meta, Microsoft, and Oracle is expected to reach 5 hyperscalers. A survey by the National Association for Business Economics found that 7,410% of economists responded that AI infrastructure will raise inflation over the next 81% said that AI infrastructure will raise inflation over the next 1 years.
The expansion of AI infrastructure construction is being identified as a new factor driving price increases. FactSet forecast that this year’s capital expenditure by large cloud companies including Alphabet, Amazon, Meta, Microsoft, and Oracle will reach 5 companies, amounting to 7,410 billion dollars, an increase of about 75% from last year.
AI data centers require a wide range of equipment, including advanced computing equipment, cooling systems to prevent overheating, power and fiber-optic cables, and emergency generators for power outages. As demand for this equipment and its components surges, prices for related components are rising.
As prices for memory and storage semiconductors rose, Nintendo, Microsoft, and Sony raised their product prices, while Apple also announced plans to raise prices. These moves by companies to increase product prices are emerging as cases in which price increases are passed on to consumer prices.
In a survey by the National Association for Business Economics (NABE), economists 81% responded that building AI infrastructure over the next 1 years would raise inflation. NABE President and Chief Economist Gregory Daco explained that, in the early stages of a major technological revolution, competition for limited resources creates upward pressure on prices.
Markets are watching the ripple effects of increased AI investment on the prices of semiconductors, servers, and power equipment. The pace at which companies execute capital expenditures and supply-chain responses are expected to determine the future course of prices.
Sources: 뉴시스 경제
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