Financing of Historic AI Buildout Raises Systemic Risks in US, Researcher Says
The buildout would need $10 trillion and could require $3.7 trillion in annual revenue by 2032, a Columbia Business School professor said.
- Columbia Business School professor Stijn Van Nieuwerburgh's Brookings Institution study projects AI infrastructure investment will total $10.3 trillion through 2032, consuming 3.6% of United States gross domestic product annually.
- Van Nieuwerburgh estimates the industry will build 183 gigawatts of new data-center capacity over the next seven years, compared with about 57 gigawatts currently installed. The expansion involves tech giants, banks, and private lenders in complex arrangements.
- Warning of systemic risks, Van Nieuwerburgh stated, "This opacity of all these special purpose vehicles is somewhat reminiscent of what happened in the subprime mortgage crisis." Outside financing has increased leverage and redistributed risks across the economy.
- Achieving projected returns requires the AI industry to earn about $3.7 trillion in annual revenue by 2032. Combined revenues of OpenAI and Anthropic currently total around $100 billion, requiring roughly 80% annual growth.
- Federal Reserve officials are monitoring whether this construction boom exacerbates inflation, while some localities resist hosting facilities due to resource strains. The study warns of "MEANINGFUL DOWNSIDE RISK" if demand expectations are revised.
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Financing of historic AI buildout raises systemic risks in US, researcher says
WASHINGTON, Sept 24 : The artificial intelligence buildout is on track to require a larger share of US output than the rollout of electricity, railroads, interstate highways or the internet, with an increasingly complicated financial structure that poses potentially systemic risks, according to a new study.Wh
The Biggest Economic Bet in U.S. History
“The AI build-out is on track to become the biggest economic bet in U.S. history, dwarfing the investments made to fund other huge U.S. infrastructure projects such as the railroads, the highway system and the plumbing for the internet,” the Wall Street Journal reports. “Total investment in data centers and related artificial-intelligence infrastructure is projected […]
The scale of investments in artificial intelligence will be unprecedented in the United States, according to a new report. They are mostly risky.
U.S. spending on the construction of AI data centers is huge. However, there were similar things in earlier boom phases. Nevertheless, the level is unprecedented, according to a study.
As investment in AI data centers increases in the US, the country's economy is becoming increasingly dependent on a single sector, creating serious risks. According to research by the US-based think tank Brookings Institute, investments in AI infrastructure will reach $10.3 trillion between 2025 and 2032. This is equivalent to an average of 3.6 percent of the US gross domestic product (GDP) annually. While AI investments are expected to reach 1.…
Financing the introduction of artificial intelligence (IT) technologies increases the potential systemic risks in the US by increasing the share in the economy at... 24.09.2026, PRIM
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