Private data center construction is experiencing a significant boom, with spending increasing by $15.2 billion since the start of 2024.
This growth is propping up the struggling nonresidential construction sector, which has seen a $52 billion decline in other private spending during the same period. The data center segment’s strength is also impacting the broader economy, with information processing investment accounting for over half of the GDP growth in the first half of 2025.
This investment surge is expected to continue for several years, driven by major companies like Google and Meta pouring vast sums into AI infrastructure. The long-term sustainability of this trend, however, hinges on whether the revenue generated by AI technology can justify the massive investments being made.