- Forecasts say that Cloud Giants sets up to spend 1.15 trillion dollars on data centers in 2027
- Economists warn of AI -build -up risks starving other industries and distorting American GDP
- Analysts fear that global data market cooling may postpone unsustainable hyperscaler investments
US cloud giants are preparing an extraordinary splurge in capital costs, new industrial figures have claimed.
According to a recent one Stockmarket.News Posts of X, over the two years from 2022 to 2024, poured Hyperscalers $ 477 billion in data centers, with Morgan Stanley adding between now and 2027, this number is set to more than twice an eye -watering $ 1.15 trillion.
The math shows the pure scale of boom estimation of global data center investments could reach $ 2.9 trillion through 2028, split between $ 1.6 trillion on chips and servers and $ 1.3 trillion on infrastructure such as real estate, power and construction – which would mean more than $ 900 billion in 2028 alone.
A huge amount of money
For context, the entire S&P 500 combined spent about $ 950 billion on capital costs in 2024.
Data Center and Power-related expenses could add as much as 40 basic points to US GDP growth between 2025 and 2026, predicts economists.
Paul Kedosky, who talks with Derek Thompson on Plain English Podcast, affected the extraordinary concentration of expenses.
“There is a huge amount of money implemented, and it goes to a very narrow set of recipients and some really small geographies, like Northern Virginia. So it is an incredibly concentrated pool of capital that is also large enough to influence GDP,” he said.
He calculated in the first half of 2025 that the cost of data center probably accounted for half of GDP growth.
Kedosky also drew parallels with the 1990s as massive capital poured into telecommunications at the expense of other sectors.
He warned that AI infrastructure may have a similar extraction effect and starve other investment industries.
A number of analysts have warned that AI investment boom is unlikely to last indefinitely.
If the global data market is cooled, the combination of record cap, concentrated capital flows and weaker consumer demand can trigger a very serious adaptation.
Sectors that have been crowded by AI-Infrastructure may have long-term damage, while Hyperscalers themselves may be struggling to justify expenses on such a massive scale.
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