Big Tech Is Smart to Invest Hundreds of Billions for AI Infrastructure. Here’s Why.

New Street analyst Pierre Ferragu is optimistic the hundreds of billions spent annually by large technologies companies for artificial-intelligence infrastructure will pay off for the industry. The analyst estimates the top four major data center technology companies— Alphabet Amazon.com Meta Platforms and Microsoft —will grow total capital expenditures to $1.7 trillion by 2035 from $253 billion last year. Ferragu expects similar results for AI infrastructure.