AI-Driven Dollar Dominance: A New Petrodollar Emerges

The signing of a 20-year data-center lease by Anthropic with TeraWulf may seem like a minor event, but it's part of a larger trend that could solidify the US dollar's dominance in global markets.

Since the 1970s, the pricing of oil in US dollars has increased demand for the currency and generated export revenues for oil producers, which often directed them towards US markets. This dynamic is being replicated with the growth of artificial intelligence (AI) technology.

AI generates massive amounts of compute, which requires significant amounts of electricity to power data centers that convert it into billable computing capacity. Companies like Anthropic are securing long-term production capacity by signing leases for these facilities.

This sets up a self-reinforcing cycle linking AI infrastructure, digital payments, and US financial markets. The demand for compute is likely to persist, and companies are already reengineering their operations around it.