PwC’s Global Data Centre Outlook shows a surge in AI infrastructure spending driven by ongoing upgrades in chips and internet-connected equipment, with AI infrastructure standing as a central capital-allocation challenge across multiple sectors.

Goldman Sachs’ chief economist warns that AI spending won’t rise forever and a slowdown is possible even in a positive outlook, signaling a two-stage cycle for tech investment.

The discussion centers on PwC and Goldman Sachs analyses and unfolds at the Communacopia & Tech conference, where Hatzius articulated his views.

Major tech players such as Meta, Google, and Microsoft are committing billions to support AI initiatives.

Hatzius sketches a two-phase tech adoption model: an investment/build-out phase with rising spending, followed by an exploitation phase where investments dwindle, potentially reversing some growth expectations.

PwC’s Clara Cutajar notes that AI infrastructure choices influence capital needs, risk, and returns across technology, energy, real estate, supply chains, regulation, and financing.

Analysts project AI infrastructure investment to reach a record $31.6 trillion globally by 2050, with data center capex rising from roughly $800 billion in 2026 to about $1.8 trillion by mid-century.