"Data center construction spend in the US hit a record high of $40 billion a year in June, Bank of America Global Research said in a new report issued this month. The report cited data from the US Census Bureau and noted that the new spending level is a 28% increase from the previous year. Amazon, Microsoft, Google, and Meta are leading the charge with sweeping expansion plans that could total more than $1 trillion in capital expenditures over the next few years."
"Even Apple, which historically has spent significantly less on data centers, said last month that it had spent $9.5 billion in the first three-quarters of the year, a 50% increase from the same period in 2024. On its first-quarter earnings call this week, Oracle stunned investors with its capex guidance of $35 billion for the fiscal year, a 65% increase from the year before. Like Apple, the software giant has historically spent less on capex relative to its peers."
U.S. data center construction spending reached $40 billion annually in June, a 28% increase from the prior year. Amazon, Microsoft, Google, and Meta plan sweeping expansions that could exceed $1 trillion in capital expenditures by 2028. Bank of America estimates those companies will spend a combined $385 billion annually on AI infrastructure between 2025 and 2028. The AI race has driven higher capital spending and companies indicated elevated capex expectations on recent earnings calls. Apple spent $9.5 billion in the first three quarters, up 50% year-over-year. Oracle guided $35 billion in fiscal-year capex, up 65%, supported in part by $317 billion in new AI contracts.
Read at Business Insider
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