US data center construction to remain strong in 2027

JP Morgan projected AI-related capex in the US will reach at least $1.5 trillion in 2027, but stay largely flat the following year due to political pushback. US midterm election results that largely cemented growing public opposition to the AI infrastructure buildout will likely have limited impact on data center construction in 2027, but may trigger a slowdown in subsequent years, economists forecast. JP Morgan projected AI-related capex in the US will reach at least $1.5 trillion in 2027, but stay largely flat the following year due to political pushback; HSBC said “AI infrastructure investment is one of the most important engines of US growth and jobs, and we believe states will be reluctant to turn it away.” Still, risks persist: “Put simply,” Barclays analysts wrote, “the economic benefits of AI are diffuse, while the costs are relatively concentrated.”