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Big Tech’s $350 Billion AI Data Center Boom Fuels Growth and Risk Fears

Analysts warn that heavy reliance on debt-financed AI infrastructure could expose the broader economy to shocks despite its boost to GDP.

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Illustration: Brendan Lynch/Axios
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Overview

  • Google, Meta, Amazon and Microsoft have reaffirmed plans to invest over $350 billion this year in building and equipping AI data centers, exceeding earlier forecasts and setting the largest corporate infrastructure push in decades.
  • Economists estimate that this surge in AI spending could add up to 0.7 percent to U.S. GDP in 2025, offsetting weakness from softer hiring and consumer demand.
  • The data-center construction boom is generating construction jobs and driving up demand for chips, servers and energy supplies, particularly in regions such as Texas and Northern Virginia.
  • Current AI capital expenditures have already surpassed telecom investment during the dot-com bubble and exceed the cost of NASA’s Apollo program at its height.
  • Market strategists warn that the sector’s heavy debt financing and concentration of investment could trigger broader economic fallout if AI demand or financing conditions weaken.