"When Sriram Krishnan, a senior White House policy advisor on artificial intelligence, appeared onstage at an event in Washington last month, he listed the Trump administration's priorities for advancing the AI revolution. At the top of the list? More construction. "Let's make sure we build our infrastructure," Krishnan said. "'Build, baby, build' is what we tell people." That rallying cry is echoing across Silicon Valley."
"Executives at Meta say they expect to spend $600 billion on AI infrastructure, including massive data centers, through 2028. OpenAI and Oracle have announced plans to put $500 billion into a data center project dubbed Stargate, while Amazon plans to spend more than $30 billion on capital expenditures, or capex, in each of the next two quarters. The problem: The business case for AI remains untested, and it's unclear whether the revenue from AI products will justify the ever-growing spending."
"Earlier this year, Business Insider published an investigation into the data center industry, creating the most comprehensive map to date of where data centers are in the US. The investigation found 1,240 data centers in America already built or approved for construction at the end of 2024, an almost fourfold increase since 2010. The data didn't include any projects that received permits this year."
A senior White House AI advisor urged prioritizing infrastructure construction to support AI growth, rallying "build, baby, build." Major tech firms plan enormous investments in AI-related data centers and capital expenditures: Meta expects $600 billion through 2028; OpenAI and Oracle announced $500 billion for a Stargate data center project; Amazon plans more than $30 billion in capex per quarter for upcoming quarters. The business case for AI revenue remains untested, creating uncertainty whether such spending will be justified. The US already had 1,240 data centers built or approved by the end of 2024, nearly quadrupling since 2010, and top tech firms could spend an estimated $320 billion on capex this year.
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