Economists Warn $800 Billion U.S. AI Buildout Could Slow as Data Center Opposition Grows
Updated
Updated · CBS New York · Nov 6
Economists Warn $800 Billion U.S. AI Buildout Could Slow as Data Center Opposition Grows
3 articles · Updated · CBS New York · Nov 6
Summary
$800 billion in 2026 hyperscaler spending on data centers and AI infrastructure could face delays and higher costs after Democrats' midterm wins strengthened political opposition to new projects.
Federal Reserve researchers estimated AI-related spending accounted for about 20% of U.S. GDP over the past year, making any slowdown in construction a broader growth risk.
Capital Economics said AI investment added roughly 0.3 percentage points to GDP growth in 2025 and should do so again this year, but a 10% annual drop from current levels in 2028 would shave about 0.1% off growth.
Stocks and consumer spending could amplify the hit: with the S&P 500 up nearly 100% in three years, economists say a 20% market drop tied to weaker AI momentum could turn a 0.5% growth boost into a 0.5% drag.
Analysts still do not expect the buildout to stop outright, since permitted and ongoing projects should continue, but they increasingly doubt AI profits will justify trillion-dollar capital spending into the early 2030s.