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Data centers are unpopular - and a powerful motor of economic growth, experts say
CBS News • • business
Key Points:
- Political opposition to data center development in the U.S. is expected to slow investment in AI infrastructure, potentially reducing economic growth and business investment linked to AI technologies.
- Spending by major tech companies on data centers is projected to reach $800 billion in 2026 and $1 trillion in 2027, but a slowdown in this buildout could have significant negative effects on the U.S. economy.
- Experts warn that while current projects will continue, future capital expenditures may decline due to uncertainties around AI’s profitability and productivity gains, leading to slower growth in data center construction.
- Reduced investment in AI could negatively impact stock markets and consumer spending, as wealth gains from AI-related equities have been a major driver of economic growth in recent years.
- A decline in AI investment by 10% annually could subtract 0.1% from GDP growth, and a significant drop in equity prices could result in a broader economic slowdown, potentially approaching recession territory.
