Dallas Fed's Logan Flags AI Data Center Boom as West Texas Inflation Driver
Updated
Updated · Bloomberg · Jun 10
Dallas Fed's Logan Flags AI Data Center Boom as West Texas Inflation Driver
2 articles · Updated · Bloomberg · Jun 10
Summary
El Paso’s AI data center buildout is reigniting price pressures in West Texas, Dallas Fed President Lorie Logan said after a recent visit to the region.
The construction race is scrambling the local labor market, pushing employers to compete for workers and lifting wages — a fresh inflation signal for the Fed.
Juarez, the Mexican manufacturing hub across the Rio Grande, is also feeling the spillover as the cross-border economy absorbs the data-center surge.
That boom is offsetting a broader investment slowdown in the area, where tariffs and trade uncertainty had stalled other projects and left the economy flagging.