AI Sparks a Boom in Data Center Construction
October 25, 2023
In this week's Above the Line, it's all about niche markets—we observe AI sparking a boom in data center construction, while the broader real estate sector faces a contrasting decline in builder confidence due to persistently high mortgage rates. These stories, along with a reflection on the Great Recession, keep you in tune with market dynamics.
AI takes a Niche Real-Estate Sector Mainstream
Wall Street Journal
Excitement over artificial intelligence is powering a boom in what was once a small niche in the commercial real-estate business. Developers are rushing to build hundreds of data centers, especially those with the high power and cooling systems that AI servers need.
Home Builder Confidence Declines Again
World Property Journal
According to the National Association of Home Builders, stubbornly elevated U.S. mortgage rates that have climbed to a 23-year high and have remained above 7% for the past two months continue to take a heavy toll on builder confidence, as sentiment levels have dropped to the lowest point since January 2023.
Uncovering Economists' Missteps: A Revisit to the Great Recession's Narratives
BloombergEconomist Tyler Cowen revisits the Great Recession, emphasizing the need for a nuanced understanding of economic downturns to better navigate current and future financial landscapes, especially in the real estate sector.