Goldman Sachs economist sees AI investment boom slowing eventually

September 10, 2026 at 05:25 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Goldman Sachs chief economist Jan Hatzius said the surge in AI infrastructure spending will not continue indefinitely, speaking at the firm's Communacopia & Tech conference. He said even a productive AI build-out will eventually transition from an investment phase to an exploitation phase, causing investment volumes to decline. PwC projects global AI infrastructure investment will reach $31.6 trillion through 2050, with annual data center capital expenditures rising from about $800 billion in 2026 to $1.8 trillion in 2050.

Key Facts

Goldman Sachs chief economist Jan Hatzius said AI infrastructure spending will not go on forever at the firm's Communacopia & Tech conference.
PwC's Global Data Centre Outlook projects global AI infrastructure investment will reach $31.6 trillion through 2050.
Annual data center capital expenditures are forecast to rise from about $800 billion in 2026 to $1.8 trillion in 2050.
Hatzius said even a positive verdict on the AI build-out will eventually lead to a slowdown as investment shifts from a build-out phase to an exploitation phase.

The Slowdown Warning

Jan Hatzius, chief economist at Goldman Sachs, told the firm's Communacopia & Tech conference that aggressive AI spending "will not go on forever." He said it is possible that many of these investments will prove unproductive, describing that as a downside scenario that cannot be excluded. Even under a positive baseline verdict on the AI build-out, Hatzius said there will eventually be a slowdown. He explained that a new technology typically goes through an investment phase with substantially rising volumes, followed by an exploitation phase where investment actually declines. That transition, Hatzius said, will create challenges and have negative effects on those who assumed the boom would continue indefinitely.

Projected Investment Scale

PwC's Global Data Centre Outlook baseline projections put global AI infrastructure investment at a record $31.6 trillion through 2050. Annual data center capital expenditures are forecast to rise from roughly $800 billion per year in 2026 to $1.8 trillion per year in 2050. Companies including Meta, Google, and Microsoft are investing billions to support their AI ambitions. PwC said AI infrastructure investment is expected to accelerate as chips and other internet-connected equipment require upgrades every few years. PwC global infrastructure leader Clara Cutajar said AI infrastructure is becoming one of the defining capital allocation challenges of the next generation, cutting across technology, energy, real estate, supply chains, regulation, and financing.