The AI data center boom is causing a new wave of inflation, data suggested. As oil prices drop with the Iran war quiescent, US consumers might hope price rises could level off. But demand for chips and energy is driving up costs for everything from smartphones to electricity.

The inflationary pressure will be lower than that caused by US tariffs, COVID, or the Iran war — tech and energy are a small fraction of most people’s spending — but it could “keep inflation broadly elevated,” The Wall Street Journal said. And the data center boom is unlikely to stop: Meta and Microsoft alone have committed tens of billions of dollars, while Amazon and Google are leading the race for new power sources.