Hyperscalers are driving a significant increase in data center infrastructure investment, with capital expenditures from leading providers (e.g., Amazon, Google, Microsoft, Meta) growing nine-fold from $26B in 2015 to an estimated $232B in 2024. While there was a temporary slowdown in spending in 2023 (due to higher capital costs and economic uncertainty), 2024 marked a resurgence in investment from these major data center players. Leading news outlets, including Bloomberg and the Wall Street Journal, have highlighted that this upward trend is set to continue, with AI demand pushing the need for greater data center capacity. Looking ahead, capital expenditure is projected to keep rising by ~33% in 2025, with Amazon forecasting a record $97B in CapEx and Microsoft anticipating $80B. As AI adoption expands globally, hyperscalers remain heavily focused on the U.S., with Microsoft’s president, Brad Smith, stating that more than half of their projected $80B investment will be directed there.
