AI-Fueled Data Center Boom Poised to Power U.S. Economic Growth Through 2026

JPMorgan Chase has projected that data center investments could contribute significantly to the growth of the U.S. economy in the coming years. With technology companies striving to harness the benefits from the ongoing artificial intelligence (AI) boom, these expenditures are expected to add 10 to 20 basis points to economic growth in 2025 and 2026.

In a report released on Wednesday, the bank highlighted that the potential growth in U.S. GDP could primarily be fueled by increased demand for the construction of data centers, investments in technological equipment, and the expansion of power generation and transmission infrastructure. The report outlines that data center expenditures might already contribute between 0.1% and 0.3% to GDP growth by 2024.

JPMorgan emphasized the persistent growth in AI innovation and its positive economic impacts as driving factors behind this forecast. The report suggests that the booming data center sector could sustain its growth trajectory for several years, given the continued advancements and economic influence of AI technologies.

Nevertheless, the bank cautioned that the longevity of this growth phase, akin to the telecom boom, will depend on the realization of expected returns from these massive investments. The sustainability of data center expansion into the latter part of the century hinges on the economic payoff aligning with the projected outcomes.