Investment Boom

• Five major hyperscalers—Amazon, Microsoft, Google, Meta, and Oracle—are projected to spend a combined $602 billion on capital expenditures by 2026. • This investment cycle represents the largest peacetime infrastructure boom in history, driving a surge in the construction of specialized hyperscale facilities. • The trend is creating opportunities for specialized contractors who offer more reasonable valuations than primary AI companies while benefiting from the buildout.

• Goldman Sachs forecasts that AI-related spending will surge to $800 billion by the end of 2026, increasing from an annualized $650 billion recorded in the first quarter. • This investment shift marks a transition from speculative interest to a structural economic force, moving beyond semiconductor giants like Nvidia and Micron. • The spending spree is creating significant ripple effects across critical sectors, including power infrastructure, data centers, and software development.

• Morgan Stanley projects that Asia could see up to US$5.5 trillion in energy investment opportunities, with a potential ceiling of US$9 trillion. • This investment boom is expected to be driven by the rising power demands of artificial intelligence and a heightened focus on regional energy security. • Notably, the bank suggests that traditional energy sources, specifically coal and natural gas, may see a resurgence to meet these growing needs.