Fed's Goolsbee says the AI data-centre build-out is starting to look like old-fashioned overheating
The Chicago Fed president pointed to rising costs for land, power, chips and skilled trades, and said services inflation is kicking up again.
Why it matters
Goolsbee has warned before that AI-related price rises were spilling beyond data-centre supply chains; on Monday he went further, calling the build-out demand overheating that central banks usually answer aggressively. He also said consumer spending, not data-centre investment, has driven growth, and that AI could mean long-run deflation even as anticipation of it lifts prices now. He does not vote on policy this year but will in 2027. Watch the next inflation data and pricing of a December rate rise.
Key facts
- Spoke Nov 9, 2026 at a Leadership Greater Chicago event
- Cited rising costs for land, electricity, chips and construction
- Said consumer spending has been the main driver of growth
- Productivity running about 2.5% vs 1.5% pre-pandemic trend
- Non-voter in 2026; votes in 2027