US spending on artificial intelligence data centers has surpassed consumer spending as a driver of economic growth, with tech giants like Microsoft, Google, Amazon, and Meta investing heavily in AI infrastructure. In 2025, capital expenditures on AI data centers are expected to reach $364 billion, contributing more to GDP growth than traditional consumer-led economy.
The rapid development of generative AI and large language models requires extensive computing resources, driving investment in data centers. AI data centers depreciate rapidly and require constant hardware upgrades, making investment patterns inherently volatile and capital-intensive. This shift in economic growth drivers has led to a tech-driven growth economy, where AI compute capacity has become the central engine of economic activity.
However, some experts warn that the AI data center boom may be unsustainable, drawing parallels with historical market excesses like the dot-com bubble. The concentration of economic power in a few sectors and firms could create systemic risks if the AI boom were to slow or reverse. The massive influx of capital into AI infrastructure is also pulling resources away from other sectors, including venture capital, traditional manufacturing, and consumer startups.
Global data center spending is expected to reach $1.1 trillion by 2029, driven by the growing demand for AI computing power. The AI data center market size is projected to grow from $17.54 billion in 2025 to $165.73 billion by 2034, at a CAGR of 28.34%. As the US economy continues to evolve, it's clear that AI will play a significant role in shaping its future.
