AI spending overtakes consumers in driving economic growth

For the first time, spending on AI data centers is contributing more to the American GDP growth than consumer spending—the long-standing driver of the economy, according to Renaissance Macro Research.

Tech titans, including Microsoft, Google, Amazon and Meta, are leading the charge, collectively pouring over $100 billion in the past three months.

McKinsey projects that this AI infrastructure boom is forecast to hit $364 billion in 2025 and nearly $6.7 trillion globally by 2030. It has grown tenfold since 2022.

AI investments are boosting the shares of Big Tech and helping to keep GDP afloat in an otherwise slow economy.

However, it’s also siphoning capital from other sectors and creating a volatile, capital-hungry growth model.

Economists compare it to past booms in railroads and the dot-com bubble, but unlike the two, data centers have short lifespans and require constant upgrades, making AI infrastructure growth volatile.