Massive AI buildout poses latest inflation threat as consumers pay more for laptops and electricity

Massive AI buildout poses latest inflation threat as consumers pay more for laptops and electricity reports that U.S. consumers and the Federal Reserve face another cost pressure linked to the AI data-center boom. Investment in data centers is likely to top $700 billion this year to support artificial intelligence, raising prices for components such as memory chips and computer processors, and also increasing electricity demand. Economists expect this pressure to continue at least through the end of the year, potentially keeping inflation rising faster than the Fed would like. The article notes Fed officials will watch June’s inflation report for additional signs of AI-driven price effects. It cites JPMorgan Chase estimates that the cost of some memory chips could jump as much as 400% between 2024 and year-end. Apple said it raised MacBook and iPad prices about 15% to 25%, and Microsoft plans a $100 Xbox price increase on Aug. 1.