Construction spending on U.S. data centers hit a record $40 billion at a seasonally adjusted annual rate in June, according to a new report from the Bank of America Institute. The surge reflects the massive capital pouring into AI infrastructure by major technology companies.
By the Numbers
The $40 billion figure represents a 30% jump from last year, following an even steeper 50% surge in 2024, based on U.S. Census Bureau data.
Why It Matters
The explosive growth of generative AI and machine learning has triggered an unprecedented demand for computing power. Tech giants including Microsoft, Alphabet, and Amazon are investing billions to expand their hyperscale data centers, enabling them to run AI workloads at scale. This infrastructure boom has also fueled record sales for Nvidia, whose GPUs power much of the AI ecosystem and now account for the bulk of its revenue.
Key Quotes
“Hyperscalers are a big part of the increased demand for power, but they’re not the whole picture,” Bank of America Institute economists led by Liz Everett Krisberg noted.
They emphasized that much of the projected growth in U.S. electricity demand through 2030 will also come from EV adoption, industrial reshoring, building electrification, and heating systems — highlighting how AI-driven infrastructure is just one force in a broader energy transformation.