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Goldman Sachs predicts that over $549 billion will be spent on AI data centers this year – a 39% increase from last year.
That amount could increase dramatically due to Elon Musk’s new Space Master Plan.
America’s big tech stocks are desperate for more artificial intelligence computing power. Recent fourth quarter earnings calls show that they’re scaling up spending this year.
Consider Alphabet. Last year the company spent $91 billion on capital expenditures. This year that number will double.
The story is similar at Amazon. Spending this year will increase 50% and could exceed $200 billion.
Amazon has stopped its share buyback program in order to pay for AI infrastructure. Additionally, the company is investing all of its free cash flow to fund this investment.
Here’s the thing.
These hyperscalers are running into huge regulatory roadblocks. Six states are working to ban data center construction. And Senator Bernie Sanders is proposing a nationwide freeze.
That’s why Amazon, Google, OpenAI and Nvidia are all considering the buildout of new space-based AI factories.
Ian Wyatt