Ed Yardeni Predicts Resilient AI Capital Spending

Economist Ed Yardeni predicts that capital spending on artificial intelligence will remain resilient despite potential congressional oversight and resistance to new data center construction in some U.S. states. While he acknowledges that states like Texas may resist further expansion, Yardeni argues that other regions, including Mississippi and Louisiana, will view the infrastructure as an economic opportunity.

Yardeni maintains that existing projects will be completed and developers will find new locations, preventing what he describes as a "free fall" in AI capital expenditure. He further notes that U.S. consumer spending remains strong, even when consumer surveys indicate depressed sentiment.