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AI · Data centers2 min read

AI stock selloff could make new data centers costlier to build

A drop in AI stock prices could make new US data centers costlier and slower to build, which may affect the AI tools and cloud services people pay for.

By the Dashline deskSource: Bloomberg Technology
AI stock selloff could make new data centers costlier to build
Photo: Victorgrigas, CC BY-SA 3.0

The recent selloff in AI stocks is making it harder to be sure about the huge wave of data center building across the US. Data centers are the large buildings full of computers that power AI tools and cloud services. One finance chief says paying for new ones could soon cost more and take longer.

What changed

Jolienne Halisky is the CFO of AIB Data Centers. She says financing for new projects could become more expensive and slower. The reason, she says, is that lenders are reassessing how risky these projects are. In plain terms, banks and other lenders may ask for higher interest or more time to review before they hand over money for a new site.

Problems that were already there

Money is not the only hurdle. Permits, power supply and chip availability were already holding back new sites. A financing squeeze would be added on top of those limits.

Who it affects

The people most directly hit are the companies building these sites and the lenders funding them. Everyday users and business owners are further down the line. If building the computing behind AI gets costlier, AI tools and cloud services you pay for could see slower growth or higher prices later.

What is not known yet

The material does not say how much more loans might cost, how long delays could last, or whether any specific project has been paused. It also does not say whether prices for any product will actually change. For now, this is a warning about risk, not a confirmed price increase.

The takeaway

Watch the price and pace of AI and cloud services, since costlier data center financing could eventually show up there.

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