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

The massive expansion of artificial intelligence data centers, with spending expected to exceed $700 billion this year from major tech companies, is driving up prices for computer chips, electronics and electricity, threatening to sustain inflation through 2026. Memory chip costs have surged as much as 400% since 2024 as four companies—Alphabet, Amazon, Meta and Microsoft—compete for semiconductor supplies, prompting Apple to raise laptop and iPad prices 15-25%, Microsoft to increase Xbox prices by $100, and Sony and Dell to follow suit. The Federal Reserve is monitoring the inflation impact ahead of its policy decisions, with economists warning that AI-driven price pressures could persist and potentially prompt interest rate increases that would raise borrowing costs across the economy.