AI-Fueled Mini Housing Bubbles Form as Commercial Delinquencies Rise · On The Market · Radar

AI Data Centers Create Boomtown Risk0:48 – 8:38

Henry WashingtonPanelist

0:48

Oh, man, I have a local-ish story, but I think the headline carries weight for investors in particular.

Henry WashingtonPanelist

0:55

The story is out of Abilene, Texas.

Henry WashingtonPanelist

0:58

It's from the Texas Standard.

Henry WashingtonPanelist

1:00

And what it talks about is the surge in housing demand in Abilene, Texas.

Henry WashingtonPanelist

1:06

This was a part of Texas where Demand has been down.

Henry WashingtonPanelist

1:09

It's a small town population of 100,000 or less, but there's a massive data center going in there.

Henry WashingtonPanelist

1:16

The Stargate AI facility is a 4 million square foot data center complex being built in Abilene.

Henry WashingtonPanelist

1:23

So it's one of the largest AI infrastructure projects in the country.

Henry WashingtonPanelist

1:27

And to build something this size in the city with just 100,000 people, they had to bring in about 6,000 construction workers.

Henry WashingtonPanelist

1:36

So that's a 6% increase in population essentially overnight.

Henry WashingtonPanelist

1:40

And those people need places to live.

Henry WashingtonPanelist

1:42

They need places to rent.

Henry WashingtonPanelist

1:43

They need hotels, right? So they need all this infrastructure.

Henry WashingtonPanelist

1:46

So it created this demand.

Henry WashingtonPanelist

1:48

And what they saw was that home prices went up 9.5% year over year in the market because of this.

Henry WashingtonPanelist

1:55

And rents increased in the market because of this.

Henry WashingtonPanelist

1:59

But the problem that this creates is that once the facility is built...

Henry WashingtonPanelist

2:05

They don't need 6,000 people.

Henry WashingtonPanelist

2:07

They need a few hundred people to run the facility.

Henry WashingtonPanelist

2:11

And so those 6,000 people don't just stick around and live in town.

Henry WashingtonPanelist

2:15

They move.

Henry WashingtonPanelist

2:15

They go to wherever the next project is.

Henry WashingtonPanelist

2:18

And so you're going to see an exodus in that town.

Henry WashingtonPanelist

2:22

And the reason I think investors need to be aware of this is because AI infrastructure projects are happening all over the country.

Henry WashingtonPanelist

2:28

There's lots of data center projects, lots of warehouses being built.

AI Data Centers Create Boomtown Risk0:48 – 8:38

Henry WashingtonPanelist

0:48

Oh, man, I have a local-ish story, but I think the headline carries weight for investors in particular.

Henry WashingtonPanelist

0:55

The story is out of Abilene, Texas.

Henry WashingtonPanelist

0:58

It's from the Texas Standard.

Henry WashingtonPanelist

1:00

And what it talks about is the surge in housing demand in Abilene, Texas.

Henry WashingtonPanelist

1:06

This was a part of Texas where Demand has been down.

Henry WashingtonPanelist

1:09

It's a small town population of 100,000 or less, but there's a massive data center going in there.

Henry WashingtonPanelist

1:16

The Stargate AI facility is a 4 million square foot data center complex being built in Abilene.

Henry WashingtonPanelist

1:23

So it's one of the largest AI infrastructure projects in the country.

Henry WashingtonPanelist

1:27

And to build something this size in the city with just 100,000 people, they had to bring in about 6,000 construction workers.

Henry WashingtonPanelist

1:36

So that's a 6% increase in population essentially overnight.

Henry WashingtonPanelist

1:40

And those people need places to live.

Henry WashingtonPanelist

1:42

They need places to rent.

Henry WashingtonPanelist

1:43

They need hotels, right? So they need all this infrastructure.

Henry WashingtonPanelist

1:46

So it created this demand.

Henry WashingtonPanelist

1:48

And what they saw was that home prices went up 9.5% year over year in the market because of this.

Henry WashingtonPanelist

1:55

And rents increased in the market because of this.

Henry WashingtonPanelist

1:59

But the problem that this creates is that once the facility is built...

Henry WashingtonPanelist

2:05

They don't need 6,000 people.

Henry WashingtonPanelist

2:07

They need a few hundred people to run the facility.

Henry WashingtonPanelist

2:11

And so those 6,000 people don't just stick around and live in town.

Henry WashingtonPanelist

2:15

They move.

Henry WashingtonPanelist

2:15

They go to wherever the next project is.

Henry WashingtonPanelist

2:18

And so you're going to see an exodus in that town.

Henry WashingtonPanelist

2:22

And the reason I think investors need to be aware of this is because AI infrastructure projects are happening all over the country.

Henry WashingtonPanelist

2:28

There's lots of data center projects, lots of warehouses being built.