The Moratorium Paradox: How Trying to Lower Costs Drives Them Higher

The Moratorium Paradox: How Trying to Lower Costs Actually Drives Them Higher

Bernie Sanders just called for a moratorium on all data center construction. His reasoning? Data centers are driving up electricity costs for American consumers.

Here's the problem with that logic: Threatening moratoria doesn't lower costs. It creates artificial scarcity. And scarcity always drives prices UP, not down.

Watch what's actually happening in the market: The moment moratorium talk heats up, the market splits in two. Entitled land with power commitments? Prices are spiking. Northern Virginia: $4 million per acre. Salt Lake City: $50k to $400k per acre in 5 years. Farmland rezoned for data centers: $30k to $150k+ per acre.

First-Order Thinking vs. Second-Order Thinking

Most people stop at the headline: "Moratorium on data centers." First-order thinking says: "That's bad for data center land." Second-order thinking asks: "What happens NEXT?"

The outcome is the OPPOSITE of the stated intention. Artificial constraints don't eliminate demand. They redirect value to whatever escapes the constraint.

Here's to building your success, one step at a time... from the dirt up.

Kris "Dirt Dawg" McGee 🐾