J.P. Morgan Predicts Economic Boost from Data Centers

J.P. Morgan forecasts that spending on data centers, essential for supporting advancements in artificial intelligence (AI), could significantly enhance U.S. economic growth by 2025-2026, with a potential GDP contribution of 0.1%-0.3% by 2024. This surge in investment has been fueled by increased political support, including an executive order from President Biden aimed at addressing the energy demands of these data centers. Concurrently, TrendForce reports that while the U.S. economy outperformed expectations in late 2024, the Federal Reserve may reduce the frequency of rate cuts in 2025, which could affect consumer spending and corporate investment confidence. Demand for AI infrastructure is anticipated to drive growth in the market for multi-layer ceramic capacitors (MLCC), with shipments projected to reach 1,146.7 billion units in early 2025. However, the overall growth in consumer electronics remains subdued, suggesting a mixed outlook for the industry. The interplay of these factors underscores the importance of AI investments in shaping future economic conditions.