The AI Data Center Boom Is Warping the US Economy

Microsoft, Alphabet, Meta, and Amazon are investing tens of billions in data centers. AI infrastructure is now a key driver of US economic growth. The amount of capital pouring into AI data center projects is staggering. Last week, Microsoft, Alphabet, Meta, and Amazon reported their 2025 capital expenditures would total roughly $370 billion, and they expect that number to keep rising in 2026. The biggest spender last quarter was Microsoft, which put nearly $35 billion into data centers and other investments, equivalent to 45 percent of its revenue. Rarely, if ever, has a single technology absorbed this much money this quickly.