Mike MilliganFounder and CEO, 1.oak Financial · Founder and CEO, 1.oak Financial

Reckless Abandonment: The Impact of AI on the Markets, the Environment, Jobs, and Your Money

11 Jul 2026 · 1 min

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Mike Milligan warns that in the first half of 2026 a handful of AI‑linked companies generated almost all of the S&P 500’s gains, with AI‑related stocks now comprising nearly half the index’s value and accounting for about 80% of its year‑to‑date increase, according to Jefferies. He projects data‑center capital expenditures—including facilities, chips, and power—to surpass $1 trillion in 2027, not as a distant future but as an imminent reality. This surge in AI‑driven compute demand is already translating into higher electricity rates: a historically flat‑rate utility in Virginia is raising prices, Ohio’s residential bills have risen roughly 22%, and Texas regulators are modeling potential rate hikes of up to 79% by 2027.

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In the first 6 months of 2026, a small handful of AI-tied companies did almost all the heavy lifting for the entire stock market. AI-related stocks now make up close to half the S&P 500's value, and Jefferies estimates they're responsible for nearly 80% of the index gains this year. Take them out and the market is basically flat. Data center spending— the buildings, the chips, and power that runs all of them— is now projected to cross $1 trillion in 2027. Not eventually, folks, that's next year. In Virginia, a utility company that keeps electric rates relatively flat over the last 3 decades is raising rates. Ohio electric bills are up roughly 22%, and in Texas, regulators are modeling price increases up to 79% by 2027.