Unlike the dot-com overbuild or railroad overexpansion which could eventually be absorbed as economies grew, semiconductor/AI data center equipment has a much shorter useful life: the replacement cost of chips and hardware in a data center is approximately two-thirds the cost of building the entire data center originally, meaning the depreciation cycle is dramatically compressed compared to previous infrastructure booms.

causalpending

Speaker

Adam Tugert

Evidence Quote

the replacement cost of a data center...It's about 2/3 the cost of building the data center in the first place

Source

There's Going To Be One Hell Of A Hangover When The Market Party Ends | Louis GaveAdam Taggart | Thoughtful Money®
Created: 8/12/2026, 6:25:43 PM

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