Data centre investment drives 92% of American growth as other sectors flatline
18 hours ago
- #AI-infrastructure
- #economic-growth
- #investment-bubble
- 92% of American GDP growth in the first half of 2025 came from data center and AI infrastructure investment.
- Economic concentration in the tech sector raises concerns about sustainability and resilience, likened to an 'economic monoculture.'
- Circular financing in AI investments, such as Nvidia's deals with OpenAI and CoreWeave, mirrors past speculative bubbles like the dot-com era and Railway Mania.
- AI infrastructure faces rapid depreciation and high maintenance costs, unlike historical infrastructure projects like railways.
- Power and grid capacity challenges, alongside supply chain disruptions, pose significant hurdles for data center expansion.
- The American economy's heavy reliance on tech sector growth creates vulnerability, with little diversification to cushion potential downturns.