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i mean the really big problem is that this is the only sector of the economy that’s booming. we’re it booming less hard, the economy would be down quite a lot generally
How were ppl happy and content back in the day. Seems like we can't get any financial stability on the bottom
This Capex seems crazy because it's such a short term asset for some of these components. I wonder how much is for each part like the actual building vs components like HVAC, servers, etc
The shift of data center capex off of big tech balance sheets is something to watch. Many are now built w developer equity (and its associated leverage to reduce WACC), then leased to big tech. How those developer balance sheets perform will be a leading indicator.
You forgot the 50% increase in Copper tariffs.
Copper is still the primary material for conducting electricity into and through these data centers.
This would be more alarming if MSFT, META, GOOGL, and AMZN didn’t have the most pristine balance sheets in earths recorded history. If it all blows up shareholders eat the frog
I am inclined to agree but here is a paper you might want to check out.
GDP-B: Accounting for the Value of New and Free Goods in the Digital Economy ide.mit.edu/sites/default/
until people start selling bundled swaps that contain swaps of those swaps we don't need to be too worried.
