The forecast points to continued heavy spending on AI infrastructure as major cloud companies expand data center and computing capacity.
Morgan Stanley reportedly projects that U.S. hyperscaler capital expenditure will reach $1.2 trillion by 2027, underscoring expectations that the buildout of AI infrastructure will continue accelerating. The projection frames current spending by large cloud and platform companies as part of a longer-running arms race to secure data center capacity, chips and networking needed to support AI workloads.