AI Infrastructure: A New Pillar of Economic Growth

AI-related business investment is rapidly becoming a cornerstone of U.S. economic growth, marking a structural shift in how expansion is financed and sustained. In the first half of 2025, investment in information-processing equipment and software — largely driven by AI infrastructure — is a small yet mighty slice of the economy, yet contributed a majority to economic growth during that period. This surge is being led by hyperscalers, like Microsoft, Amazon, Meta, and Alphabet, which are collectively projected to spend hundreds of billions on AI-related capital expenditures this year. The boom includes massive data center construction, hardware purchases, and early-stage investments in supporting infrastructure like power grids. While the full economic impact is still unfolding, AI investment has already outpaced traditional growth drivers like consumer spending, suggesting a fundamental restructuring of the economy’s growth model. We will address more of this phenomenon in our upcoming 2026 Outlook. Nonetheless, AI-related capital spending is expected to play an even larger role, and not just in tech, but across sectors adapting to automation, data-driven decision-making, and productivity enhancement. The reordering of international trade this year intensifies the pressure on domestic firms to improve productivity and lower input costs. AI is part of that process.