08/06/2025

How the AI Spending Boom is Reshaping an Otherwise Slowing Economy

Big Tech is becoming an even more important part of American prosperity

Big Tech’s unprecedented spending spree on artificial intelligence is getting so big that it is starting to reshape the U.S. economy.

This past week, Amazon, Google, Meta and Microsoft reaffirmed that they are on track to spend more than $350 billion this year building and equipping AI data centers — a massive influx of money that economists and analysts say could be a countervailing force to what appears to be a decelerating economy.

Revised job numbers released Friday by the Labor Department suggest the U.S. job market appears weaker than previously understood, with employers pulling back sharply on new hiring in May and June. At the same time, Big Tech’s infusion of cash will go toward building and expanding data centers, which could create more infrastructure jobs as well as higher demand for computer chips, servers and other network equipment that power them. AI investments could grow the economy by as much as 0.7 percent in 2025, according a calculation by Jens Nordvig, an economist and the founder of economic data platform Exante Data. That would represent half of the 1.4 percent growth projection for the U.S. economy this year from the Federal Reserve.

Please select this link to read the complete article from The Washington Post.