The Data Center Construction Surge May Be Nearing A Plateau

Tech giants keep ramping up their artificial intelligence spending, but the blistering growth of the AI data center construction boom may not last much longer. 

The pace of data center construction has accelerated to unprecedented levels as Big Tech companies increase investments in the infrastructure to support their AI ambitions. The combined capital expenditures of the world’s largest tech firms jumped 73% year-over-year last quarter, and hyperscalers Amazon, Google, and Microsoft project it will grow even faster in the months ahead.

Overall data center construction spending doubled between 2024 and 2025 and is expected to nearly double again in 2026. But the data center sector’s stunning skyward growth trajectory may have an imminent expiration date...

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RSK: My thought is this; instead of large mega centers, there will be more smaller centers strategically located so as not to put such high demand on the grid. Just my thought.