US data-center boom sends shockwaves through factory supply chains

The AI infrastructure race has a spending problem, and it is not that companies are spending too little. Monthly US data-center construction spending hit $45.1 billion by December 2025, an 85% jump from just two years prior. Amazon Web Services, Microsoft, Google, Meta, and Oracle are collectively projected to spend approximately $1.15 trillion in capital expenditures from 2025 through 2027, according to Goldman Sachs estimates. The driver is AI compute demand, which requires far denser and more power-hungry hardware configurations than conventional cloud workloads. Deloitte forecasts that US AI data center power demand will grow from 4 GW in 2024 to 123 GW by 2035, a more-than-thirtyfold increase in roughly a decade. The supply chain is not keeping up Constructing a data center requires gas turbines, transformers, switchgear, cooling systems, and miles of specialized cabling, all sourced from manufacturers with long production queues. US gas turbine production runs at around 10 GW annually when allocated to commercial operation dates. Transformer lead times have stretched dramatically, and switchgear manufacturers are operating at capacity. Between 30% and 50% of data center capac...