Fed's Goolsbee says AI data center buildout is starting to look like 'demand overheating'

Chicago Fed President Austan Goolsbee said Monday that the AI data center buildout is starting to look like "old-fashioned demand overheating," pointing to rising costs for land, electricity, materials and skilled trades such as electricians. Speaking at a Leadership Greater Chicago event, he said central banks should be "aggressive up front" because overheating is painful to reverse, though he stopped short of calling AI a bubble or naming a specific rate move. Traders are pricing in a likely quarter-point hike at the Fed's December meeting.