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AI Data Center Boom Drives Up Costs for Smartphones and Electricity
Semafor reported that surging demand from AI infrastructure is contributing to inflation even as oil prices fall. Major technology companies have committed tens of billions of dollars to new facilities and power sources.
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Semafor reported that the AI data center boom is causing a new wave of inflation as of June 25, 2026. Demand for chips and energy is driving up costs for smartphones and electricity. Oil prices are dropping because the Iran war is quiescent.
The inflationary pressure from AI data centers will be lower than that caused by U.S. tariffs, COVID, or the Iran war, The Wall Street Journal said, noting that tech and energy are a small fraction of most people’s spending. Meta and Microsoft alone have committed tens of billions of dollars to the data center boom.
Amazon and Google are leading the race for new power sources. The effect could keep inflation broadly elevated, according to the same analysis.
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