Construction spending on artificial intelligence (AI) data centers in the U.S. reached a record high of $40 billion in June, according to a report from Bank of America (BAC).
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The record spending comes as technology giants such as Microsoft (MSFT), Amazon (AMZN), and Google parent company Alphabet (GOOGL) pour billions into AI infrastructure. The June construction spending was 30% more than what had been spent a year earlier. And construction spending on U.S. data centers rose 50% year-over-year in 2024.
Mega-cap technology companies are racing to build out vast networks of data centers to deliver the computing power needed to fuel generative AI and machine learning, among other technological advancements. Tens of billions of dollars are being spent to set up the needed infrastructure.
AI Workloads
The so-called hyperscalers such as Microsoft and Amazon are spending billions to scale their operations and support cutting-edge AI workloads. The situation has led to a windfall for semiconductor companies such as Nvidia (NVDA) that supply the microchips used in data centers and to operate AI technologies.
“Hyperscalers are a big part of the increased demand for power, but they’re not the whole picture,” wrote Bank of America in its report. “In fact, most of the expected rise in U.S. electricity demand through 2030 is coming from things like electric vehicles (EVs), heating, industrial reshoring, and electrifying buildings.”
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