🚨 AI DATA CENTER DEMAND ISN’T THE PROBLEM. THE COST OF CAPITAL IS.
We are heading into a very active Q4 for AI infrastructure, private credit and real assets. CoreWeave is being repriced, Treasury yields remain high, and the market is finally forcing sponsors to prove that projects can survive expensive money.
⛽ The inflation story matters because energy is doing real damage. September CPI was 3.7% year over year, core CPI was 2.6%, gasoline jumped 9.1% in one month, and diesel is roughly 69% higher than a year ago. Using current trucking cost data, that diesel shock alone can translate into roughly a 14% increase in truck operating cost, all else equal.
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The skinny
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