5:18 1 October 2025
Citigroup lifts AI forecast
Citigroup has sharply raised its forecast for global spending on artificial intelligence infrastructure, projecting outlays will top $2.8 trillion by 2029, up from $2.3 trillion previously. The surge is fueled by hyperscale operators like Microsoft, Amazon, and Google, alongside rising demand from corporate clients, Bloomberg reported.
The bank now sees AI-related capital expenditure by leading data center operators reaching $490 billion by 2026, compared to an earlier $420 billion estimate. Despite slower momentum following the launch of cheaper Chinese models such as DeepSeek, and uncertainty tied to U.S. trade policy, investment continues to accelerate.
Citigroup estimates building the required 55 GW of additional computing capacity by 2030 will cost about $50 billion per GW, with $1.4 trillion of total spend concentrated in the U.S. Analysts warn that profits alone cannot cover these commitments, forcing tech giants to seek debt financing.
