Perpetual says AI investment boom drives up commodity prices
TLT•Perpetual said data center investment totaling hundreds of billions of dollars is driving up commodity and computing-component prices, while higher capital demand has pushed many benchmark yields to their highest levels in more than a decade.
1. Investment and prices
Perpetual's September 2026 quarterly market update said AI-driven investment is adding upward pressure to prices and interest rates. Data center investment totaling hundreds of billions of dollars is driving up commodity prices, alongside prices for computing components.
2. Risks to the outlook
Higher capital demand has helped push many benchmark yields to levels not seen in more than a decade. Perpetual said rising oil prices are complicating central banks' efforts to contain persistently high inflation without tipping economies into downturns, while geopolitical tensions, including the Iran war, pose risks beneath an apparently calm market environment.
