Citi: $2.8T AI Buildout Spurs Security, Debt Concerns

Citigroup now projects hyperscalers will spend about $490 billion next year and that cumulative AI-related infrastructure buildout could exceed $2.8 trillion by 2029, up from an earlier $2.3 trillion estimate. Much of the expansion is being financed with debt rather than cash, increasing default and interest-rate risk and fueling concerns of an investment bubble while suppliers such as Nvidia stand to benefit. Citi estimates the scale will drive roughly 55 gigawatts of new power capacity by 2030 and about $1.4 trillion of U.S. investment, with significant economic and geopolitical implications. Experts warn rapid embedding of AI into weaponry requires urgent ethical, legal and strategic rethinking, including consideration of new international-law frameworks. At the same time, AI is reshaping cybersecurity, with AI-enabled phishing, deepfakes and automated attacks eroding traditional perimeter defenses and exploiting humans as the weakest link.