Data center personal consumption expenditures inflation

Yesterday the Dallas Federal Reserve announced that “Even a modest data center boom could substantially raise retail electricity prices and hence annual inflation. For example, under plausible assumptions about the data center build-out and utilization, annual PCE inflation in 2030 would increase by between 0.04 and 0.13 percentage points. Slower-than-expected growth of renewable energy sources—wind and solar—could nearly double the inflationary effect.”