When it comes to artificial intelligence, the world’s largest technology companies are not holding back. Amazon, Alphabet, Microsoft, and Meta are set to invest a staggering $364 billion in capital expenditures during their 2025 fiscal years, a dramatic leap from $325 billion in 2024. A recent analysis by IMPLAN’s Vice President of Customer Success, Candi Clouse, Ph.D., shows that this surge in spending will have profound ripple effects across the U.S. economy.

“These findings underscore that Big Tech’s AI investments are more than corporate balance sheet moves — they represent a nationwide economic force,” said Clouse. “When companies build out data centers and AI infrastructure, it sets off a chain reaction that touches everything from construction to manufacturing to local retail. The takeaway is that these investments are reshaping the U.S. economy in ways that matter for communities, workers, and policymakers alike.”

Modeling the Impact

Capital expenditures like these are typically split between construction of new commercial structures (think data centers and server farms) and the purchase of equipment, such as servers and electronics. Based on industry estimates, approximately $72.8 billion will go toward construction (IMPLAN Industry 50) while $291.2 billion will fund servers and related equipment (IMPLAN Industry 287).

Modeling with IMPLAN reveals just how far these investments reach beyond the initial outlay.

The Big Picture: $364B Becomes $923B

The direct $364 billion investment by Big Tech in 2025 is projected to support approximately:

• $923 billion in U.S. economic output
• 2.7 million jobs supported
• $297 billion in labor income
• $469 billion contribution to GDP
• $105 billion in tax revenues

While the direct investments alone support about 620,000 jobs, the supply chain effects and additional household spending expand the total impact more than fourfold.

Industries Seeing the Largest Gains

The ripple effects of this investment extend far beyond tech. Some of the largest industries supported include:

• Electronic computer manufacturing
• Construction of new commercial structures
• Wholesale trade – professional/commercial equipment & supplies
• Wholesale trade – household appliances & electronics
• Printed circuit assembly (electronic assembly) manufacturing

The People Behind the Impact

These investments also support a wide range of occupations. Among the most impacted job categories are:

• Construction Trades Workers
• Computer Occupations
• Business Operations Specialists
• Material Moving Workers
• Retail Sales Workers

This mix of roles underscores how AI-related investments affect both high-skill and middle-skill segments of the workforce.

Forward Linkages

Once these servers and data centers come online, they create ongoing economic activity. IMPLAN analysis finds that the $291 billion in server investments alone will generate an additional $21 billion in forward linkages, boosting industries such as:

• Peripheral equipment manufacturing
• Printed circuit assembly
• Automobile and light-duty motor vehicle manufacturing
• Search, detection, and navigation instruments manufacturing
• Broadcast and wireless communications equipment manufacturing
• Data processing, hosting, and related services (critical for AI data centers)

This analysis leverages IMPLAN’s new Forward Linkages capabilities, an exciting addition to our modeling toolkit. While traditional impact analysis focuses on backward linkages (how investments drive demand across supply chains) Forward Linkages reveal how new industries and facilities, once operational, generate additional economic activity. In the case of Big Tech’s AI investments, this means we can see not only the impact of building and equipping data centers, but also how those centers go on to support industries like data processing, electronics manufacturing, and communications equipment. This dual perspective offers a more complete picture of long-term economic effects.

Why It Matters

Big Tech’s push into AI infrastructure represents one of the largest waves of private investment in U.S. history. The economic ripple effects show just how interconnected these projects are, not only supporting tech innovation but also construction, manufacturing, retail, and professional services across the country.

With IMPLAN, decision-makers can better understand the full scope of impacts – direct, indirect, induced, as well as forward-looking, making it clear that AI investments aren’t just about algorithms. They’re about jobs, industries, and communities nationwide.