Sept 10 (Reuters) -

Construction spending on U.S. data centers reached an

all-time high of $40 billion at a seasonally adjusted annual

rate in June, as technology giants continue pouring billions

into AI infrastructure, according to a Bank of America Institute

report.

BY THE NUMBERS

The June figure represents a 30% increase from the

previous year, following a 50% surge in 2024, the report said,

citing U.S. Census Bureau data.

WHY IT'S IMPORTANT

The boom in generative AI and machine learning is fueling

demand for computing power, prompting tech heavyweights

including Microsoft ( MSFT ), Alphabet and Amazon.com ( AMZN )

investing billions in setting up the infrastructure.

These hyperscalers have been spending billions to scale

their operations to support AI workloads, creating a windfall

for semiconductor companies like Nvidia ( NVDA ), which supplies

chips used in data centers and derives the bulk of its revenue

from such sales.

KEY QUOTES

"Hyperscalers are a big part of the increased demand for

power, but they're not the whole picture," Bank of America

Institute economists led by Liz Everett Krisberg said in the

report.

"In fact, most of the expected rise in U.S. electricity

demand through 2030 is coming from things like electric vehicles

(EVs), heating, industrial reshoring, and electrifying

buildings."