UAE Reviews 5-Gigawatt AI Data Center Plan as War Threats Escalate

A growing roster of investors, strategists and industry leaders are warning that the artificial-intelligence boom may be nearing a breaking point, with concerns shifting from the debt and interest rates funding massive data centers to the technology's potential for catastrophic harm. Ray Dalio said the bubble is nearing the point where it may burst because rising interest rates and increased borrowing to fund the AI infrastructure buildout create a need for cash, while strategist Joachim Klement said his core conviction is that the AI bubble will burst in 2027 or 2028. Michael Burry has taken short positions against Nvidia, Oracle, Palantir, Nebius, Micron and CoreWeave, arguing that enormous capital spending might not translate into durable returns, and Galaxy Digital CEO Michael Novogratz called it the biggest bubble of our lifetime while advising investors to ride the wave. OpenAI CEO Sam Altman said investors as a whole are overexcited about AI, and Sequoia's David Cahn put the annual gap between AI infrastructure spending and ecosystem revenue at nearly $600 billion, saying the bubble is reaching a tipping point. Anthropic CEO Dario Amodei called for slowing the pace of AI model improvements, with OpenAI's Sam Altman and SpaceX founder Elon Musk agreeing, after Anthropic insider Evan Hubinger put his personal estimate of the probability that AI could kill all humans at more than 10% within the next decade.

Prologis's Texas data center venture with Skybox Datacenters ran into uncertainty in late September 2026 after new statewide limits on large power grid hookups raised questions about the Hutto project's timing, scale and potential rental income. The restrictions introduce project-specific uncertainty for the Hutto data center but do not materially change Prologis's near-term earnings catalyst, which still rests on lease-up, rent resets and integrating development profitably. A cluster of UK Takeover Code disclosures showed TIAA, Charles Schwab Investment Management and Dimensional Fund Advisors each reporting more than 1 percent stakes in Prologis, as the company raises equity and pursues the potential US$18.8 billion to US$19 billion SEGRO acquisition. Prologis's narrative projects $10.4 billion revenue and $3.6 billion earnings by 2029, requiring 2.5% yearly revenue growth but a decrease of about $0.6 billion in earnings from $4.2 billion today. Three Simply Wall St Community fair value estimates for Prologis span roughly US$126.95 to US$158.23, with the published forecast implying a $158.23 fair value, a 22% upside to its current price.

Global debt issuance tied to artificial intelligence fell to $23bn in September, nearly half the amount raised the previous month, according to data compiled by Morgan Stanley covering both public bonds and private placements. New financing has declined steadily since the market peaked in June, when companies raised a record $113bn for infrastructure including data centres and chips, and in the US investment-grade market, where blue-chip tech groups borrowed around $306bn between January and August, AI-related bond issuance ground to a halt last month. Morgan Stanley attributed the decline primarily to the volume of debt already raised earlier in the year, but investors are also increasingly concerned about whether such heavy investment can pay off and about growing political opposition to data centre construction. An estimated $466bn of AI-linked debt has been raised by companies in 2026 so far, up from $101bn for the same period last year, and the shift in sentiment is set to test upcoming deals, including a $60bn financing package Wall Street banks are assembling for Broadcom and Anthropic and SpaceX's talks to raise $40bn to purchase Nvidia chips. About $18bn of loans tied to Oracle's New Mexico data centre campus, known as Project Jupiter, were privately quoted at around 85 cents on the dollar in recent days after Oracle issued a force majeure notice when the site struggled to gain access to electricity.