US Data Center Construction Hits Record High Amid Surging AI Demand, BofA Report Shows
AI-Generated Summary
US data center construction spending reached a record $40 billion annually in June, marking a significant increase from the previous year. This boom is primarily driven by the escalating demand for computing power for generative AI and machine learning, prompting major tech companies like Microsoft, Alphabet, and Amazon to invest billions in infrastructure.
In a nutshell
This report highlights the massive capital expenditure by tech giants to build out the foundational infrastructure required for advanced AI. While AI is a major driver, it also contextualizes this growth against other rising electricity demands, providing a broader view of energy consumption trends in the US.
Source: The Economic Times
