Not only energy, AI will also trigger inflation! Global infrastructure asset management giant IFM: massive spending triggers "inflation pulse" impact may last for decades.

David Neal, CEO of global infrastructure fund manager IFM Investors, has stated that the massive expenditures on artificial intelligence and global energy transition could cause inflation pressures in the coming decades. Neal said, "Investors should pay more attention to inflation issues, not just because of the soaring energy prices." Neal stated that while the recent surge in energy prices is a "warning signal," there are other structural pressures at play. He said, "A large amount of funds is flowing into areas such as artificial intelligence and energy transition. This in itself is an inflation pulse, and this trend will continue for decades." The investment management company, which manages assets worth $264 billion Australian dollars ($183 billion US dollars), is collectively owned by over a dozen Australian pension funds (including the largest pension fund in Australia, AustralianSuper) and the UK pension fund Nest. About half of its portfolio is invested in infrastructure, including data centers in the US and Switzerland. The four major tech companies in the US predict that by 2026, their total capital spending will reach about $650 billion this funding will be used to build new data centers and their related equipment. These four companies are Alphabet (GOOGL.US), Amazon.com, Inc. (AMZN.US), Meta Platforms (META.US), and Microsoft Corporation (MSFT.US), all of which aim to dominate the emerging market of artificial intelligence tools. Neal pointed out that "government fiscal deficits" are another pressure point. He said, "People generally tend to consume, eager to consume, which may also bring some pressure to major central banks, forcing them not to raise interest rates excessively. All these factors together create an environment that already exists, and now we are facing the situation of soaring energy prices."