According to J.P.Morgan, spending on data centers could increase U.S. economic growth by 10-20 basis points in 2025-2026 due to the rush by technology firms to capitalize on the artificial intelligence surge.
As OpenAI introduced ChatGPT in 2022, investments in data centers, crucial for AI computing power, have risen. Various industries are shifting to cloud-based operations and incorporating AI into their services.
Major cloud firms like Microsoft and Alphabet have been making substantial investments in AI-related ventures.
J.P.Morgan noted that GDP could see significant growth through increased demand for data center construction, technology equipment, and power infrastructure. In 2024, data center spending likely boosted GDP growth by 0.1%-0.3% according to the bank.
The brokerage projected that every 5-10 gigawatt in new power capacity might entail $20 billion in spending or 7 basis points of GDP. The U.S. Energy Information Administration forecasted a surge in power consumption in 2025 and 2026.
An executive order was signed to provide federal support for the escalating energy needs of advanced AI data centers.
J.P.Morgan predicts that the data center expansion will continue over the next few years due to advancements in AI and its potential economic benefits. Yet, they added that sustained growth beyond the first half of the decade hinges on realizing the expected returns from these investments, akin to past telecom booms.