U.S. Data Center Construction Spending Hits Record $40 Billion as AI Boom Accelerates
Spending on U.S. data centers reached a record high of $40 billion in June, according to a new report from the Bank of America Institute. The figure is based on seasonally adjusted annual data from the U.S. Census Bureau. The surge highlights how technology giants are investing heavily in AI infrastructure.
By the Numbers
The June total reflects a 30% increase from the previous year, following an even larger 50% surge in 2024. This steady growth underscores the scale of demand for computing power driven by artificial intelligence.
Why It Matters
The rapid adoption of generative AI and machine learning has created a massive need for advanced computing capacity. Tech leaders such as Microsoft, Alphabet, and Amazon are investing billions to expand their data center infrastructure.
This expansion has also benefited the semiconductor sector. Nvidia, a leading chip supplier for data centers, now generates the majority of its revenue from AI-related demand.
Key Insights from the Report
According to Bank of America Institute economists led by Liz Everett Krisberg, hyperscalers are driving much of this growth in power demand. However, they are not the only factor.
The report notes that most of the expected rise in U.S. electricity use through 2030 will also come from electric vehicles (EVs), industrial reshoring, heating, and the electrification of buildings.
