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Retirement savings fueling AI data center debt, economist Lenore Palladino warns

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Lenore Palladino, an economics professor at UMass Amherst, argues that workers' retirement savings are helping finance the AI data center boom through private equity.

She says private equity firms are behind 25-30% of data center financing. She cites S&P's September warning that hyperscaler credit quality is weakening, and a projected $7 trillion in data center spending by 2030, much of it debt-financed.

Palladino urges pension trustees to avoid unregulated assets tied to the data center boom.

Written by AI from the articles below · updated Nov 12, 1:40 AM ET

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Nov 11
  1. Hacker News · AI (150+ points)Blog
    Retirement savings are fueling the AI data center bubble

    AILenore Palladino, an economics professor at UMass Amherst, argues that private equity firms are behind 25-30% of data center financing, drawing on workers' retirement savings. She cites S&P's September warning that hyperscaler credit quality is weakening amid a projected $7 trillion in spending by 2030, much of it debt-financed. She urges pension trustees to avoid unregulated assets tied to the data center boom.

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