U.S. data center spending hits all-time high of $40B on AI demand surge

Spending on data centers in the ￰0￱ a record high of $40B in June, following a 50% increase in the same time period last ￰1￱ surge in the adoption of artificial intelligence is fueling the need for more data centers and in turn increasing energy consumption, raising concern from ￰2￱ on data centers has reached $40B Construction spending on ￰3￱ centers rose to a record amount of $40B in June, according to a new report from the Bank of America ￰4￱ increase is due to the rapid expansion of artificial intelligence (AI) and machine learning technologies, which require immense computing ￰5￱ adoption of AI technology has prompted major technology companies to ramp up investments in digital ￰6￱ figure marks a 30% increase from the same period last year, which experienced a 50% ￰7￱ and technology companies like Microsoft, Alphabet, and Amazon are at the center of this increased ￰8￱ companies are known as “hyperscalers” due to the scale of their global cloud ￰9￱ hyperscalers have invested billions into building and expanding data centers to support the massive computing needs of generative AI tools and machine learning ￰10￱ foundation of modern AI applications relies on a vast network of servers and specialized hardware to process enormous ￰11￱ growth of large scale data centers that can meet those demands has had an effect across the technology industry, especially for chipmakers like Nvidia.

Nvidia’s graphics processing units (GPUs) are used in a number of AI training and inference tasks due to their high performance, and a good portion of the company’s revenue from sales is linked to the demand from data ￰12￱ Bank of America Institute emphasized that while hyperscalers are driving much of the current demand, they are not the sole force behind it. “Hyperscalers are a big part of the increased demand for power, but they’re not the whole picture,” Bank of America Institute economists led by Liz Everett Krisberg said in the ￰13￱ demand concerns With the increase of data center construction, energy consumption within the ￰14￱ also on the ￰15￱ to the economists at the Bank of America Institute, most of the rise in electricity demand through 2030 is expected to come not just from AI data centers, but also from electric vehicles (EVs), heating systems, industrial reshoring, and the electrification of ￰16￱ projected surge in power demand poses new challenges for utilities, policymakers, and the energy ￰17￱ centers are known to consume a significant amount of electricity, as each facility requires large amounts of energy not only to power computing equipment but also to maintain cooling ￰18￱ more of these facilities becoming operational, concerns about the long-term strain on ￰19￱ grids are also ￰20￱ your project in front of crypto’s top minds?

Feature it in our next industry report, where data meets impact.