{"id":34845,"date":"2025-08-27T12:22:12","date_gmt":"2025-08-27T12:22:12","guid":{"rendered":"http:\/\/medexperts.pro\/?p=34845"},"modified":"2025-09-02T23:27:11","modified_gmt":"2025-09-02T23:27:11","slug":"the-a-i-spending-frenzy-is-propping-up-the-real-economy-too","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=34845","title":{"rendered":"The A.I. Spending Frenzy Is Propping Up the Real Economy, Too"},"content":{"rendered":"
<\/div>\n

The trillions of dollars that tech companies are pouring into new data centers are starting to show up in economic growth. For now, at least.<\/p>\n

\n
\n
\n

It\u2019s no secret by now, as investors await an earnings report on Wednesday by the chip behemoth Nvidia, that optimism around the windfall that artificial intelligence may generate is pumping up the stock market.<\/p>\n

But in recent months, it has also become clear that A.I. spending is lifting the real economy, too.<\/p>\n

It\u2019s not because of how companies are using<\/a> the technology, at least not yet. Rather, the sheer amount of investment \u2014 in data centers, semiconductor factories and power supply \u2014 needed to build the computing power that A.I. demands is creating enough business activity to brighten readings on the entire domestic economy.<\/p>\n

Companies will spend $375 billion globally in 2025 on A.I. infrastructure, the investment bank UBS estimates. That is projected to rise to $500 billion next year. Investment in software and computer equipment, not counting the data center buildings, accounted for a quarter of all economic growth this past quarter, data from the Commerce Department shows.<\/p>\n

(Even that probably doesn\u2019t reflect the whole picture<\/a>. Government data collectors have long had trouble<\/a> capturing the economic value of semiconductors and computer equipment that large tech companies like Meta and Alphabet install for their own use, rather than farming out to contractors, so the total impact is likely to be higher.)<\/p>\n<\/div>\n<\/div>\n

<\/div>\n
\n
\n

The big tech companies are the largest financiers of the frenzy, but private equity firms<\/a> have been pouring in capital, too. Brookfield Asset Management, which manages a vast real estate portfolio, estimates<\/a> that A.I. infrastructure will sop up $7 trillion over the next 10 years.<\/p>\n

The torrent of cash comes as the effects from Biden-era infrastructure subsidies fade, erratic tariffs freeze corporate decision making and high borrowing costs deter less lucrative real estate projects such as housing and warehouses. In 2025, spending on data center construction \u2014 not including the cost of all the technology they house \u2014 will exceed investment in traditional office buildings, according to the Dodge Construction Network.<\/p>\n<\/div>\n<\/div>\n

\n
\n
\n

A.I. Infrastructure Has Overtaken Office Construction<\/h2>\n

Spending on building data centers has ballooned in recent years \u2013 and that\u2019s not even counting the equipment that goes into them.<\/p>\n<\/header>\n

\n<\/div>\n