Reported 1 day ago
J.P. Morgan forecasts that investments in data centers may contribute between 10 to 20 basis points to U.S. GDP growth in 2025-2026, driven by the rising demand for artificial intelligence and cloud computing. With tech giants like Microsoft and Alphabet investing heavily in AI, spending on data center construction and related infrastructure could significantly boost economic activity. The brokerage notes that while spending on data centers likely contributed modestly to GDP growth in 2024, larger investments in power generation will be necessary to meet the increasing energy demands from these facilities.
Source: YAHOO