New York and Texas Halt Data Center Construction

The states of New York and Texas have announced moratoriums to slow the construction of data centers. These measures come as investors and economists observe a slowdown in the artificial intelligence industry, though analysts view the trend as a temporary setback rather than a collapse. Long-term demand for automation and chips is expected to remain high, driven by declining global birth rates, despite current concerns over AI profitability and labor market impacts.

Simultaneously, market analysts expect the Federal Reserve System to hike interest rates at its upcoming Wednesday meeting. This expectation follows recent CPI and PPI inflation data. Federal Reserve Chair Kevin Walsh has adopted a progressively more hawkish tone since taking office in May, stating that inflation must return to 2% at a sufficient speed.