Tech Giants Outspend Big Oil on AI Data Centers
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Top tech companies like Alphabet, Amazon, Meta, and Microsoft are outspending big oil companies on capital expenditures to upgrade data centers for AI.
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Tech giants spent $140 billion on capex in 2023, while big oil companies like BP, Chevron, Exxon Mobil, and Shell spent around $80 billion.
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Oil companies historically spend more when energy prices rise, but tech capex is expected to reach $200 billion annually by 2025.
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Data centers are seeing growing demand, especially newer facilities that can support power-hungry AI systems.
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The AI boom is fueling a "gold rush" in new data centers, now the hottest buildings in commercial real estate.