When rate hikes began in 2022, office construction rolled over as usual, sliding about a third. Data-center construction did the opposite, roughly quadrupling and overtaking office construction for the first time, because AI capex does not care what money costs.
The biggest swing factor in construction is now immune to interest rates. The Fed must hold higher for longer to slow this economy, and everyone positioned for quick cuts is offside.
The Fed's brakes stopped working, and this is why.
When rate hikes began in 2022, office construction rolled over as usual, sliding about a third. Data-center construction did the opposite, roughly quadrupling and overtaking office construction for the first time, because AI… pic.twitter.com/JechmOK0Py
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) August 22, 2026
30-Year Treasury Yield closes the week at 5.27%, the highest weekly close since June 2007 🚨 🚨 pic.twitter.com/cf0ckWmYPI
— Barchart (@Barchart) August 22, 2026