@Azuaron @david_chisnall @Jennifer @ewen The AI bubble is causing AI companies to commission huge data centers, which in turn raise commercial real estate prices all round (we're talking fractional-million square metre warehouse scale buildings here, not simple office blocks).
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@cstross @Azuaron @Jennifer @ewen
It's a bit more than that. A load of real estate funds were sitting on what was about to become negative equity because COVID reduced the demand for office space. A lot of loans came due this summer, but the new data centre leases let them refinance them and hide other losses. But that depends on their tenants not invoking early break clauses. Rather than the bubble bursting, it was propped up by another one. And that means they are likely to pop together.
