Jerome Powell says you're right to blame data centers for making your bills more expensive: 'probably pushing inflation up'

US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Credit: Brendan SMIALOWSKI / AFP via Getty Images)

Fed Chair Jerome Powell acknowledged Wednesday that the AI-fueled data center boom is contributing to inflation, pushing back on the popular argument that the productivity gains from artificial intelligence should be bringing prices down already.

“In the short term, what’s happening is we’re building data centers everywhere, and that’s actually putting pressure on all kinds of goods and services that go into building these things,” Powell said at a press conference following the Fed’s decision to hold interest rates steady. “So that’s actually probably pushing inflation up.”