Posted by goldielocks
@ 8:05 on September 16, 2026
Data centers of course. off topic except for rare earth possible silver and copper.
Why Data Centers Resist High Interest Rates
- Insulated Tech Giants: The companies funding and building these mega-projects—such as major cloud providers and hyperscalers—often possess massive cash reserves or extraordinary profit margins driven by the artificial intelligence boom. [1, 2]
- Strategic Necessity: Tech firms view computing and AI infrastructure as a critical “arms race” where falling behind is riskier than paying higher borrowing costs. [1, 2]
- Strong Spending Growth: Data center construction spending surged over 20% year-over-year, acting as a primary driver keeping non-residential construction employment afloat while sectors like housing, manufacturing, and retail slow down. [1, 2, 3]
- Higher Financing Costs: While big tech can absorb higher costs, smaller developers or external debt-financed projects still face steeper borrowing expenses and tighter loan terms. [1, 2]
- Resource Competition: The massive capital flowing into data centers drives up demand for specialized labor (like electricians) and materials, occasionally pulling scarce talent away from interest-sensitive sectors like homebuilding. [1]
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