Apollo projects that capital expenditures by Amazon, Alphabet, Meta, Microsoft, and Oracle as a percentage of US GDP will rise from 1.4% in 2025 to 2.4% in 2026, and further to 3.1% in 2027. In comparison, capital expenditures in the broadcasting and telecommunications industries during the dot-com bubble peaked at only 1.2% of GDP.
The rate of expansion is also noteworthy: the percentage of GDP is projected to increase by 1.7 percentage points from 2025 to 2027, with an average annual growth rate nearly double that of the fastest phase of the housing boom. This means that AI development is no longer just a tech industry story, but a crucial pillar of US growth, equipment investment, electricity demand, and bond financing.