Could AI spending reach a trillion dollars by 2030?

Monty Fool Money starts now.

Welcome to Molly Fool Money. I'm Travis Hoyum, joined by Lou Whiteman and Tim Byers.

We're going to talk today about housing. We're going to have Lou and Tim cut some of their

favorite stocks from a mini portfolio. Well, let's start with artificial intelligence. Morgan

Stanley recently said that they expect global data center spending to increase from

$307 billion in 2024 to $920 billion in 2030.

Data Center CapEx is driving companies like Nvidia, Amazon, Alphabet, but they're not making

enough cash to make that investment themselves. So,

Tim, when you see these huge projections, what do you hear, and do we actually have enough

cash flow from these companies to spend almost a trillion dollars per year on CAPEX?

We do, and we don't. And let's start with the we do. They are committing quarter over quarter, Travis, somewhere in the order of, and these are multiple companies, somewhere between $50 and $100 million every single quarter. That's extraordinary. I mean, it really is. I'm sorry, I said million. I meant billion.

Like, this is just a few orders of magnitude bigger. Yeah, it's a few orders of baggage.

I mean, this is extraordinary amounts of money. So on the one hand, yes, but on the other,

this is a market that is, yes, but on the other, this is a market that is out of sync. It's completely out of sync.

The build out of hardware is so extreme that the infrastructure to support all that hardware

just isn't in place yet.

And I know you've covered energy quite a bit over the years, Travis.

And I just, I don't see how you don't get to a point where there is a little bit of

slowdown in the hardware buildout.

And then you do some catch up around energy infrastructure, around environmental

infrastructure, around like city planning, you know, urban planning.

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