AI investment surge

Hyperscalers are spending $1 trillion annually on AI infrastructure, outpacing housing investment.

“We're seeing a pivotal shift in the US economy: investment is shifting away from residential investment and towards computers.”

Housing market freeze

Residential investment fell 18% from 2021 peak to $748 billion in Q2, while AI spending grew 51% to $752 billion.

Interest rate sensitivity

AI investment remains stable despite rising mortgage rates, with 30-year rates near 7% and 10-year yields at 2007 highs.

Corporate debt surge

AI companies issue debt without concern for borrowing costs, with Alphabet reporting negative cash flow.

2027 investment forecast

S&P Global projects AI companies will spend $1.3 trillion in 2027, up from $870 billion in 2026.

Political backlash

64% of voters say they'd support candidates opposed to building data centers in their communities.