Austan Goolsbee, president of the Federal Reserve Bank of Chicago, told EuroHerald that the rapid build-out of AI data centres is creating pressure on resources that could lead to aggregate overheating in the US economy.
What happened?
During an exclusive interview, Goolsbee explained that demand for the infrastructure needed to run large-scale artificial-intelligence models is driving up construction costs and squeezing the availability of skilled workers, HVAC equipment and other inputs. He said the expansion is "very hot, but largely shoving other parts of the economy down".
"The rise has been stepping on others, they're competing for the resources. When I'm touring around the Seventh district, people are saying: 'We're having to scale back our plans because getting construction workers is too expensive, you can't get HVAC,' etc," Goolsbee said.
He added that while the current situation reflects a sectoral rebalancing, the economy is "not far from" turning that into broader overheating.
Why does it matter?
The Federal Reserve monitors inflation and overall economic stability. If AI-related capital spending continues to outpace supply, it could push up wages and prices beyond the Fed's target range, complicating monetary policy. Analysts note that AI-driven capex is currently a major driver of GDP growth, but a slowdown could reverse those gains.
What happens next?
Goolsbee suggested that policymakers will need to watch construction-sector bottlenecks closely and consider whether targeted measures are required to prevent spill-over effects. Market observers expect the peak of AI capex growth to arrive later this year, after which a moderation in spending could ease pressure on the broader economy.
For now, the Fed will likely keep a close eye on labour market tightness and price trends as the AI data-centre boom unfolds.