The Latest Challenge to Data Centers? Restive Investors.

Andrew here. We’re waiting on the jobs report this morning. Here’s something perverse to consider: If the employment picture is better than expected, the Fed could raise interest rates — which might push down stock prices.

Also: As interest rates climb, will the increasing cost of debt slow down the build-out of data centers? We’ve got a fascinating look at the implications below.

Data centers versus the 10-year

Political backlash against data centers and shortfalls in capacity to power them have weighed heavily on the infrastructure build-out for artificial intelligence.

Now the industry is facing another challenge: soaring financing rates.

The yield on the 10-year Treasury note traded at 5.22 percent on Friday after hitting a multi-decade high on Thursday. Higher borrowing costs are threatening the economics of A.I. infrastructure development, Niko Gallogly reports.

Article source: https://www.nytimes.com/2026/10/02/business/dealbook/data-center-ai-bonds.html