As AI expands, Americans have doubts

What It Covers

Gold futures surpass $5,000 per ounce as central banks shift holdings away from dollar assets. Americans express significant concerns about AI expansion despite its contribution of nearly one percentage point to GDP. Data center infrastructure demands surge, consuming 4% of US power in 2024, projected to reach 10% by 2030.

Key Questions Answered

• •Gold Market Shift: Gold now slightly outvalues treasury bonds in central bank holdings, with US dollar assets dropping below 50% of total reserves while gold reaches 28%. This momentum rally reflects investor anxiety over tariffs, geopolitical tensions, and rising government debt, with central banks diversifying into euros and yen while buying gold as sanction-proof assets.
• •AI Economic Impact: Artificial intelligence contributed 0.9 percentage points to GDP growth in the first three quarters of 2024 across software, equipment, R&D, and data centers. In a $31 trillion economy, this represents substantial economic value. However, Pew Research data shows Americans remain more concerned than excited about AI adoption despite its rapid integration into business operations.
• •Data Center Power Consumption: Data centers used 4% of all US electricity in 2024, with projections showing 133% growth to nearly 10% by 2030. Wholesale electricity prices have more than doubled in some regions due to increasing demand. One-third of data center energy goes to cooling systems, with facilities requiring enough power to run thousands of homes per building.
• •Durable Goods Orders Signal: November durable goods orders increased 5% overall, with 0.5% growth excluding transportation, driven by AI-related spending on data centers and computers. Factory owners are upgrading aging equipment due to generous tax deductions under new legislation. Economists identify business investment momentum despite ongoing tariff uncertainty creating headwinds for equipment purchases.
• •Colocation Data Centers: Purpose-built colocation facilities like CoreSite provide shared infrastructure for multiple tenants including banks, hospitals, and social media platforms, offering superior energy efficiency compared to individual enterprise data centers. These facilities maintain cold aisles at 75 degrees and require liquid cooling solutions for higher density AI computing, serving local user populations rather than remote hyperscale training operations.