Some are worried that, as investments in AI continue to surpass epic levels, what the effects will be if the bubble bursts. A new report from the Bank for International Settlements (BIS), via The Register, cites precedents in which an overabundance of investment in industries or technologies resulted in global financial catastrophes.
“In its annual report for 2026, the Bank for International Settlements compared the current craze to historical events, including canal and British railway mania in the 1800s, electrification exuberance of the 1920s, and the dotcom boom of the 1990s.”
– The Register
The Register has been tracking investments from multiple companies worldwide whose expenditures are already at or expected to reach $140 billion to $200 billion, with grand totals well in excess of $1 trillion for 2026. These investments are said to be the source of new debts accrued by power players across the globe. Risks to planned data center expansions continue to grow with concerns over available power and the added costs to local consumers who live nearby, the ability for memory manufacturers to meet demand, other natural resources such as water for cooling, and the complications in getting power to them. All of this combined could result in a financial implosion if the right conditions become a catalyst. “Should inflation spike or AI-led investment collapse, the macroeconomic consequences could be amplified by “existing financial vulnerabilities,” states the report.
““Disappointment in returns could trigger a sudden pullback in financing and turn the capex boom into a protracted investment bust with potential knock-on effects on the financial conditions,”
– BIS
Consumers are already feeling the financial effects of investments in AI, with the DRAM/NAND products hitting astronomical prices. The rampocalypse, which began in Q4 25, is continuing to wreak havoc for individuals and businesses alike, causing many to either abandon plans to purchase new components or equipment, or pay added costs that seem to rise at the blink of an eye.