Christopher Schmidt, who works for Google and is a founding member of the Alphabet Workers Union, posted this thread today on BlueSky:
In 2026, Amazon, Alphabet, Meta, Microsoft, and Oracle plan to spend $725 billion on data center buildout.
I wonder what other things in the economy are happening at that scale. Like, how does this compare to, I dunno, all road-widening projects? Or global solar installations?
It's hard for me to picture what $725B looks like in terms of capital expenditures.
Like, Massacusetts has a $16B 5-year capital plan; expanding that per-capita to the US means something like $260B/year for the combination of all states in the US, so AI capex is 3x larger than all state-level capex spend.
It looks like the 2024 estimate of CapEx for solar installed in the US was $1.61/W, and US solar added 43GW in 2025, so total solar installed at that rate in the US in 2025 was around $69B (nice), so it's around 10 times as much as all US solar installations in 2025.
Total construction on US highway projects in 2025 is estimated at $188B, with ~$50B for expansion projects, so it's 4 times as much as all US highway spending, and 15 times as much as all highway expansion spending.
He continues with numbers on urban rail, private home construction, and some numbers from other parts of the world.
Then:
Total outlays for physical capital by the US government in 2025 were expected to be $463B as of March 2025. So the data center investment by hyperscalars is expected to be 50% higher than all US federal government physical capital investments combined.
So in 2026, the $725B capex to be spent on data centers:
- 40% more than new housing construction.
- 50% more spending than the US federal government.
- ~3x US state capital spend.
- 8x all of Africa infrastructure.
- 5x all global rail.
- 4x all US highway spend.
- 10x US solar spend.
He ends by comparing with the boom and bust of U.S. railroad expansion, 1867–1873, which led to the devastating Panic of 1873.





