AI Investment Drives US Growth as Top Five’s 2027 Capital Spending Is Seen Topping $1 Trillion

The generative AI boom is driving demand for data centers, chips, servers and power infrastructure, gradually turning technology-sector capital spending into a major source of US economic growth. Estimates show that first-quarter US GDP growth would have been only about 0.66% without AI investment, underscoring its importance.

Morgan Stanley recently sharply raised its forecast for AI capital spending by the five largest cloud service providers, estimating that their combined outlays will exceed $1.1 trillion in 2027. AI infrastructure investment also accounted for about 75% of US GDP growth in the first quarter of this year. Power-supply bottlenecks and concerns that investment may be overheating are now key issues to watch.