Insight: US Datacenter Investments Get a Big Beautiful Boost, Drawing Near the $1 Trillion Datacenter Capex

US datacenter and AI investments soar under new legislation, with tax incentives and AI Action Plan pushing capex past $1T by 2028. Google ups plans by $10B.

The US administration is boosting its support for US datacenter and AI investments with the recently enacted One Big Beautiful Bill and the unveiling of a broader AI Action plan. US hyperscalers' capital expenditure is soaring, and we expect it to be revised upward in the coming weeks. Google just announced a $10 billion increase to its investment plans, expecting 2026 to be even higher. A key provision allows companies to deduct 100% of their investment in "qualified production property" in the year the expense is incurred—rather than spreading it out over several years—resulting in significant upfront tax benefits when considering datacenter costs into the tens of billions of dollars. Additional regulatory changes announced in the AI Action plan will make expanding capacity even more appealing, and we anticipate datacenter capex to exceed $1 trillion by 2028.