Construction spending on U.S. data centers hit a record $40 billion in June, driven by tech giants investing in AI infrastructure, per Bank of America Institute. The figure marks a 30% increase from the previous year, following a 50% surge in 2024, based on U.S. Census Bureau data.

The rise in generative AI and machine learning is boosting demand for computing power, leading companies like Microsoft, Alphabet, and Amazon.com to pour billions into AI infrastructure. This surge benefits semiconductor firms like Nvidia, which supplies chips for data centers and derives most revenue from such sales.

Bank of America Institute economists noted that hyperscalers are a significant factor in increased power demand, but not the sole cause. The expected rise in U.S. electricity demand through 2030 is also driven by factors like electric vehicles, heating, industrial reshoring, and electrifying buildings.

Read more at Yahoo Finance: US data center build hits record as AI demand surges, Bank of America Institute says