The rapid expansion of artificial intelligence is reshaping America's investment landscape, with technology firms now leading the nation in capital expenditures, according to a new report from the Progressive Policy Institute (PPI). The study, set for release Wednesday, reveals that Amazon, Alphabet, Meta, and Microsoft collectively accounted for more than half of all US capital spending in the past year.
PPI's annual "Investment Heroes" report, shared first with The Hill, found that these four tech behemoths invested a combined $269 billion of the $520 billion in domestic capital expenditures recorded last year. Amazon topped the list with an estimated $93 billion in domestic investments, followed by other tech and industrial giants.
This marks a 61.1% surge from their 2024 spending levels, driven by soaring demand for computing power and the infrastructure needed to support AI technologies. Oracle also cracked the top 10, investing over $15.7 billion domestically.
Michael Mandel, PPI's chief economist and author of the report, noted that the scale of investment is unprecedented. "We haven't seen any great growth out of the companies that are investing in the AI boom," he told The Hill, underscoring the transformative impact of the sector.
Other top domestic spenders include retail giant Walmart, telecom providers Verizon Communications and AT&T, Apple, oil majors Exxon Mobil and Chevron, and energy firm Chevron. The list reflects a broader shift away from traditional industrial leaders toward technology-driven enterprises.
When PPI first launched the report in 2012, industrial companies—such as those in fiber networks, power grids, and retail—dominated the rankings. Over time, however, tech firms "just kept rising," Mandel said, reflecting the growing economic weight of the digital sector.
The report also highlights a stark productivity divergence. While utilities, construction, and manufacturing were projected to grow by at least 14% from 2016 to 2026, all three sectors actually declined by more than 4.5% between 2014 and 2024. In contrast, the information sector—including big tech, internet providers, and semiconductor firms—saw productivity soar by 61.3%.
PPI acknowledges the growing backlash against AI firms and data center developers, but argues that these concerns are "manageable." The think tank wrote, "True, data centers can bring real issues like electricity rates, water use, or noise. Local and state governments have access to a selection of practical tools that minimize impacts and ensure that communities reap the benefits of the investment they host." They added that the massive buildout of data centers, chips, transmission, and connectivity is "positioning the country for growth and strategic strength."
Mandel emphasized that the AI boom is "the only game in town really" when it comes to boosting productivity and raising living standards. He hopes AI can revive other sectors like manufacturing by generating new jobs and increasing efficiency. "We sort of live in this world in which the digital sector has invested a lot and grown much faster, and the physical sectors... have invested a lot less and grown much more slowly," he said. "Our task here going forward, if we want to meet the changes, we have to sort of use AI to help accelerate growth in manufacturing."
He added, "If we were just investing in AI for better chatbots, you can understand [why] people will be troubled by data centers. If the data centers are going to be surrounded by sort of high tech manufacturing that can sort of add jobs and reduce costs, it becomes a much more appealing proposition."
Public sentiment toward AI and the firms behind it has deteriorated over the past year, fueled by concerns over data centers, labor displacement, and the potential for AI to empower malicious actors. A Gallup poll released in July found public confidence in large technology companies at a record low, dropping from 32% in 2020 to 20% in 2026.
Market analysts have also expressed worries that tech firms' AI ambitions are leading to massive debt accumulation. According to LSEG data, bonds issued by these hyperscalers have surged from $16.7 billion in 2024 to $193 billion so far in 2026.
For the study, PPI analysts selected the top 200 companies from the Fortune 500 list, excluding financial and non-health insurance companies. All companies are US-based, and researchers estimated domestic capital expenditures using data from annual 10-K filings and other financial documents. The findings underscore the pivotal role of AI in shaping America's economic future, even as debates over its societal impact intensify.
