Eye On The Market The Blob: Capital, China, Chips, Chicago and Chilliwack
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Sep 24, 2025 Explore the booming world of AI and data centers, where construction is reshaping market dynamics and capital flows. Discover the implications of Oracle's partnership with OpenAI amidst tight equity supplies. Delve into Chicago's troubling crime rates and fiscal challenges, highlighting the impact of underfunded pensions. Learn how various countries, including China, deploy industrial policies to foster chip champions, while examining the risks and rewards of global supply chains. Lastly, enjoy personal anecdotes from a trip to Chilliwack, Canada.
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AI Stocks And Data Centers Dominate Growth
- A basket of ~40 AI-related stocks drove 75–80% of market returns and >90% of CapEx and R&D growth since Nov 2022.
- Data centers now rival office construction and heavily strain power grids and electricity prices.
Data Centers Pressure Power Markets
- Specialized power rates for data centers often don't cover the true cost of new natural gas plants, which doubled to ~$2,500/kW.
- PJM found data center demand caused ~70% of the 2024 electricity price increase in its region.
Oracle–OpenAI Could Supercharge AI Buildout
- The Oracle–OpenAI deal signals non-hyperscalers may borrow heavily to build AI capacity and accelerate the arms race.
- Oracle would need ~4.5 GW of power and likely borrow because current cashflows can't support it.