Fed governor links AI buildout to wider inflation

Federal Reserve Governor Lisa Cook said AI investment is adding broader inflation pressure, pointing to electricity and water costs each rising around 5% over the past year while companies have spent only a small fraction of the $2 trillion in announced AI plans. In her September 28 speech, Cook said productivity gains may ease pressure over the next few years but not offset broadening inflation later this year. Operators should file this as a capital-cost signal for AI projects, not a forecast of the next rate move; the archive’s data-center power analysis tracks how buildout demand reaches household bills.