By Journal Services

Investment in artificial intelligence and data center infrastructure is giving the U.S. economy a notable boost in 2025.

Economists estimate that spending in these areas is adding between 0.1 and 0.4 percentage points to gross domestic product growth this year. In the first quarter, the impact briefly spiked as high as 1 percentage point, driven by construction, hardware purchases and AI system deployment.

Data center and AI-related spending has quadrupled since 2020, making it one of the fastest-growing capital investment categories. Analysts compare the surge to past waves of U.S. industrial growth, including railroad expansion in the 19th century and the telecom boom of the 1990s.

The trend underscores how technology investment is shaping the economy. Data centers and AI are already supporting short-term growth, and continued spending could sustain momentum through the decade.