**Industry Impact on Inflation: AI Data Centers Driving Prices Up**
Federal Reserve Chairman Jerome Powell announced that the proliferation of artificial intelligence (AI) data centers is contributing to increased inflation, as reported during a press conference on September 17, 2025. He highlighted that the demand for goods and services to build data centers is exerting upward pressure on prices. In contrast, Kevin Warsh, President Trump’s nominee to replace Powell, had previously described AI as a disinflationary force.
In light of Powell’s comments, analysts recommend considering investments in companies with pricing power, such as Freeport-McMoRan, which produced 3.4 billion pounds of copper last year and plans to increase production by about 60% by 2030. Other potential investment opportunities include Micron Technology, a key supplier of memory chips facing strong demand, and Constellation Energy, the largest private-sector power producer in the world, which is benefiting from increased energy demands driven by AI infrastructure.
