If you’ve done an economics degree then surely you’re familiar with Dutch disease? Usually this only happens in resource extraction, but data centers are a form of resource extraction by extracting value from our data so there are similarities. That’s why the rest of the economy is already in recession, but the tech sector continues to boom. It’s parasitic.

Which might mean, once the parasitic AI bubble bursts, funds will be reallocated back into the productive economy again.

Or not. Maybe it just blows up the last remaining part of the economy that’s still functional and we enter another depression.