The amount of capital pouring into AI data center projects is staggering. Last week, Microsoft, Alphabet, Meta, and Amazon reported their 2025 capital expenditures would total roughly $370 billion, and they expect that number to keep rising in 2026. The biggest spender last quarter was Microsoft, which put nearly $35 billion into data centers and other investments, equivalent to 45 percent of its revenue.
Rarely, if ever, has a single technology absorbed this much money this quickly. Warnings of an AI bubble are getting louder every day, but whether or not a crash eventually happens, the frenzy is already reshaping the US economy. Harvard economist Jason Furman estimates that investment
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