Amazon, Meta CapEx Drives Record $45 Billion Data Center Construction Boom, Overtaking Office Build With 29% Jump

Driven by massive infrastructure spending from tech giants like Amazon.com Inc.(NASDAQ:AMZN) and Meta Platforms Inc. (NASDAQ:META), the value of U.S. data center construction has officially surpassed traditional office buildings for the first time in history. A Historic Flip In Real Estate The American commercial real estate landscape has crossed a monumental threshold. According to recent market data highlighted by The Kobeissi Letter, data centers under construction have surged with a “29% YoY [jump], to a record $45.1 billion.” This rapid growth has pushed data center projects past general office construction, marking a permanent shift in how corporate America utilizes physical space. Source: The Kobeissi Letter on X. The ChatGPT Effect And Big Tech CapEx This unprecedented boom is being directly fueled by the artificial intelligence (AI) revolution. To support resource-heavy AI models, hyperscalers have aggressively ramped up their capital expenditures (CapEx). Companies like Amazon and Meta are leading the charge, pouring billions into sprawling, power-dense facilities designed to handle massive computational workloads. The shift accelerated sharply following the public debut of generative AI. “Since November 2022, when ChatGPT was launched, data center construction is up +228%,” The Kobeissi Letter noted, concluding simply that “AI is reshaping the US economy.” The Decline Of Traditional Offices While the digital infrastructure sector thrives, traditional office construction continues to face a severe downturn, still grappling with the long-term impacts of remote work and shifting corporate priorities. The value of general offices currently under construction has fallen by 13% over the past year. Now sitting at just $43.5 billion, office development has officially hit its lowest point since October 2015. The contrast is staggering: over the exact same period that data center builds skyrocketed by over 200%, general office construction has plummeted by 38%. This stark divergence underscores a clear transition in the modern economy. As investments in the physical office fade, the digital data center is swiftly taking its place. AMZN And META Underperform In 2026 Shares of Amazon were down 9.56% year-to-date, and Meta declined 8.06%, while the Nasdaq 100 index tumbled 3.38% in the same period. However, over the last month, AMZN was up 1.90%, and META dropped 5.91%. Benzinga’s Edge Stock Rankings indicate that AMZN maintains a weak price trend over the long, short, and medium terms, with a solid growth score. Benzinga’s Edge Stock Rankings indicate that META maintains a weak price trend over the long, short, and medium terms, with a moderate value score. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock