Global economy enters record capex cycle toward $5 trillion by decade's end
Updated
Updated · Fortune · May 10
Global economy enters record capex cycle toward $5 trillion by decade's end
5 articles · Updated · Fortune · May 10
TCW's Eli Horton said energy transition spending, sharpened by the Iran war and Strait of Hormuz closure, joins AI investment in driving the boom.
He cited energy security, rising electricity demand and decarbonisation, with renewed US power demand linked to manufacturing, electrification and AI data-centre growth.
Bank of America estimates hyperscaler capex will exceed $800 billion in 2026 and could hit $1 trillion next year, while Caterpillar and GE Vernova are seen benefiting.
Is the trillion-dollar AI infrastructure boom a sustainable revolution or the next great speculative bubble?
As AI's thirst for power strains global grids, which nations will win the race for energy dominance?
Could your home become the next data center, solving the AI industry's massive infrastructure problem?
Unprecedented $5 Trillion Global Capex Surge (2024–2030): AI, Green Technologies, and the New Economic Order
Overview
The global economy is undergoing an unprecedented surge in capital expenditure, projected to last through 2030. This extraordinary period is fueled by a mix of structural tailwinds, evolving public policy, and strategic corporate decisions. Private markets are positioned for long-term growth, with escalating demand for AI-driven infrastructure leading to rapid build-out of data centers and energy transmission networks. The AI revolution is not limited to one region, as investment spreads globally. These trends are creating significant opportunities for capital markets, while also reshaping industries and driving innovation across sectors.