Search
 

Data Center Development Could Substantially Boost GDP, J.P. Morgan Says

The sector’s momentum is being fueled by artificial intelligence.

By Kristen Smithberg | January 21, 2025 at 06:21 AM

Spending on data centers could help grow the US economy by 10 to 20 basis points by the end of 2026, according to a J.P. Morgan estimate. The GDP boost would come primarily through demand for data center construction, technology equipment investment, and additional power generation and transmission infrastructure, the firm said, according to an account in Reuters.

The sector is enjoying momentum driven by artificial intelligence, which requires increased computing power. Companies shifting their operations to the cloud and integrating AI into their offerings are further driving the data center sector.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.