Big Tech’s $635 billion AI spending faces energy shock test, S&P Global says

Massive investments in artificial intelligence that underpinned record runs in equities face a major ‌hurdle as the Middle East crisis clouds prospects for growth ‌and energy costs, said Melissa Otto, head of research at S&P Global Visible Alpha. Before the ​Iran war broke out, tech giants Microsoft, Amazon, Alphabet and Meta planned to spend about $635 billion on data centres, chips, and other AI infrastructure in 2026, S&P Global has said. Although tech companies have yet to signal cutbacks in those capital investments, persistently high oil prices could ⁠force spending revisions in the first and second quarters, bringing a “really meaningful correction in all equity markets,” Otto said.Read More