Linneman Letter – October 2026

The following is an excerpt from the Fall 2026 edition of the Linneman Letter:

Enthusiasts will tell you that artificial intelligence (AI) is about to remake the economy in just a few quarters, while in the same breath, they say that it will leave much of the workforce unemployed. We think they are wrong not only about how fast it will arrive, but also how destructive it may be to the workforce and about who will reap the rewards. AI adoption will be far slower than promised, will not leave us jobless, and will sort people into those it strengthens and those it softens.

The value of private data center construction a decade ago was only about $2 billion a year. In 2025, it was about $41 billion. And more is underway, particularly in Northern Virginia and Texas. By the end of 2027, data center capacity is estimated to rise to 646 million square feet. Between March and August of 2026, the number of operating data centers in the U.S. jumped by 124% from 577 to 1,290, while the number of planned projects increased by 203% to 2,019 over the same period. These facilities currently require about 71 gigawatts (GW) of energy capacity (about 2x the entire average energy production of the UK for all uses), rising to 110 GW by the end of 2027.

Read the entire article – Linneman Letter – Fall 2026