Key Points
Four major technology companies are projected to invest over $625 billion in data centers and AI infrastructure in 2023 as competition for dominance in AI tools intensifies. Analysts express skepticism about the positive impact of this spending on profits and shareholder returns. Last week, Microsoft’s shares dropped 11% following disappointing quarterly results that indicated slowing revenue growth in its Azure cloud, despite increased data center spending plans.
The data center construction market is expected to grow from $241 billion in 2024 to $456 billion by 2030, with a compound annual growth rate of 11.8%. As these tech giants vie for AI customers, the companies building data centers stand to benefit significantly from this rapid infrastructure buildout.
