AI is no longer just a promising innovation. It is now actively shaping economic outcomes around the world. The surge in capital investment in data centres, high-performance chips and supporting infrastructure is strong enough to maintain growth in major economies such as the US, even as other indicators like job creation soften.
At present, the AI investment boom is having a measurable effect. In the US, technology-led capital spending has helped prevent an economic slowdown in early 2024, even as momentum in hiring declines. These projects involve substantial upfront costs but require fewer workers, creating an unusual situation where weak employment figures occur alongside strong economic performance.
Globally, AI infrastructure is scaling at a rapid pace. Analysts expect growth in related capital spending to exceed 30% each year, driving record demand for chips from countries such as South Korea and Taiwan. Taiwan’s semiconductor exports have surged during 2024, and South Korea’s shipments have returned to pre-2022 levels. Major European suppliers are managing high demand, and US utilities report that data centre power requirements are rising quickly.
Unlike previous technology booms, AI’s influence reaches far beyond Silicon Valley. Fierce competition among tech giants, generous government incentives from countries like the US and Japan and growing international demand for machine learning capability are driving this expansive growth. Public funding programmes under legislation such as the US CHIPS Act are mobilising billions to support semiconductor manufacturing and energy infrastructure.
As AI infrastructure expands, ripple effects are transforming entire industries. Energy grids, renewable power, construction materials and global shipping are all growing alongside AI. In the US, data centre electricity use is projected to double by 2030, prompting investment in energy projects as key industrial sectors try to meet the new demand.
Markets are already adjusting to this major shift. The surge in AI investment is having an impact on asset prices and trading activity across equities, commodities and currencies. Although regulatory challenges and energy supply issues could slow momentum, there is little to suggest that this trend will reverse anytime soon.
A downturn in 2026 appears unlikely under present circumstances. As high-margin tech projects replace traditional manufacturing as key growth drivers, artificial intelligence is changing the fundamentals of economic expansion. This is not simply a digital shift. It is the most significant macroeconomic transformation in a generation.
