Data Centers #1 Non-Residential Construction Starts in 2026

Friday, June 12, 2026

AI capex now represents about 5% of US GDP, a level last seen during the late-1990s technology boom.

Posted by snoofy at 06:33 PM | 14 COMMENTS | permalink | Comment on This Entry |

The composition is different from the late-1990s cycle in one important respect: today's AI capex is concentrated among five companies (Microsoft, Alphabet, Meta, Amazon, plus Apple at smaller scale), all of which are profitable, cash-generating businesses. The 1990s telecom buildout was distributed across dozens of carriers, many of which were operating at a loss and financing capex with debt that ultimately defaulted.

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Will corporate CapEx (Capital Expenditure, a.k.a. infrastucture) spending result in enough profits to offset that spending?

Oracle investors seem to have an opinion ...

Stock Market Today, June 11: Oracle Falls After AI Spending Guidance Sparks Cash Flow Concerns
finance.yahoo.com

... Oracle (NYSE:ORCL), an enterprise software and cloud services provider, closed Thursday at $184.10, down 8.53%.

The stock dropped after its fiscal Q4 earnings beat was overshadowed by guidance for sharply higher AI-related capital spending and negative free cash flow. ...

#1 | Posted by LampLighter at 2026-06-11 08:41 PM | Reply

Meanwhile, rural America seems to be turning against data centers ...

Nebraska County Bans Data Centers For Up To A Year
www.gadgetreview.com

... Otoe County suspends permits for up to a year after Google-Tenaska project would need 1,000-3,000 megawatts of power ...

#2 | Posted by LampLighter at 2026-06-11 08:44 PM | Reply

Mississippi Residents Sue xAI Over 'Near Constant Noise' From Data Centers
www.pcmag.com

... The gas turbines at data centers run by Elon Musk's xAI are so loud that it's like being around a 'jet engine' at all times of the day, the lawsuit claims. ...

#3 | Posted by LampLighter at 2026-06-11 08:45 PM | Reply

'The Most Bipartisan Issue Since Beer': Opposition to Data Centers
www.nytimes.com

#4 | Posted by LampLighter at 2026-06-11 09:44 PM | Reply

In my part of the world, where some of these data centers are being built, there are fierce concerns that the whole thing will be some massive dead end.

Some of the data centers around here, scheduled for construction, won't be.

The fear seems to be that the data centers will end up being the equivalent of Blockbuster franchises much sooner than expected.

#5 | Posted by Zed at 2026-06-12 08:33 AM | Reply

Do the people with those fears know what most data centers do?

#6 | Posted by sitzkrieg at 2026-06-12 01:42 PM | Reply

Do the people with those fears know what most data centers do?
#6 | Posted by sitzkrieg

Make a horrible noise and reduce property values?

#7 | Posted by snoofy at 2026-06-12 01:42 PM | Reply

I was thinking more along the lines of, all that doom scrolling and streaming the people with those fears do, is being fed by a data center they've lived near for 20 years and still don't know it's already there.

#8 | Posted by sitzkrieg at 2026-06-12 01:45 PM | Reply

These new data centers aren't going to generate ROI because people are doom scrolling their social media feeds.

We also don't really need any new capacity for that.

#9 | Posted by snoofy at 2026-06-12 01:47 PM | Reply | Funny: 1

In the rural areas it seems to be mostly about water usage. Water they feel is already in short supply and needed by farmers.

#10 | Posted by eberly at 2026-06-12 01:51 PM | Reply

"In the rural areas it seems to be mostly about water usage."

Impoverished local flyover governments, desperate to bend over for Coastal investment dollars.

#11 | Posted by snoofy at 2026-06-12 01:55 PM | Reply

wow...just when I thought I had hit the 2 faced hypocrite gold mine with Platner....

all the "greenies" now looking the other way with each new center

you 2 faced dopes make my "job" so easy.....

#12 | Posted by shrimptacodan at 2026-06-12 02:17 PM | Reply

We also don't really need any new capacity for that.

#9 | Posted by snoofy at 2026-06-12 01:47 PM | Reply | Flag:

Didn't know you were a Principal Network Engineer too. When did you get that job?

#13 | Posted by sitzkrieg at 2026-06-12 06:18 PM | Reply

Correction:
Humans don't need any new capacity for that.
Bots, on the other hand...

#14 | Posted by snoofy at 2026-06-12 06:21 PM | Reply