Data centers are now the largest financial bet ($10 trillion) in US history raising concerns

The United States is projected to see a $10 trillion surge in data center investment, potentially reaching nearly 4% of GDP.

This unprecedented growth, influenced by artificial intelligence expansion, rivals the 19th-century railroad boom in scale but raises structural concerns about tax revenue losses, soaring energy demands, and displacement of other investments like housing.

Data center construction has more than doubled to $85 billion annually over two years, while overall construction dropped 8 percent and new housing development fell by $29 billion since 2024. States such as Nevada and Virginia have enacted measures—including tax abatements reconsideration, energy and water cost mandates, and electricity surcharges—to address rising utility costs and fiscal impacts. The boom’s electricity consumption is projected to double, with concerns raised about utility affordability.

Nevada implemented an executive order in September 2026 requiring data centers to cover their energy and water expenses, with other jurisdictions contemplating moratoriums or surcharges.

Experts including the International Monetary Fund warn of potential stock market corrections if AI-related profitability falters, while Columbia Business School’s Stijn Van Nieuwerburgh has estimated the buildout’s electricity consumption.

If Montana were to attract such projects, balancing tax incentives, energy costs, and housing availability would likely require careful navigation to avoid challenges seen elsewhere.

Data centers are now the largest financial bet in US history
By The Missoula Current News – Daily News in Missoula Montana