Data Centers

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A computer processor held upright by black tweezers, its gold contact pads facing the camera, against a plain grey background.
AI

Five Tech Groups Asked Trump to Spare Data Centers From Chip Tariffs. For Now, They Are Exempt.

The Computer & Communications Industry Association and four other technology trade groups wrote to President Trump on Friday warning that broad Section 232 tariffs on semiconductors, robots and industrial machinery would raise the cost of building AI data centers and factories. Advanced chips bound for American data centers are exempt from the 25 per cent tariff imposed in January. A second phase under discussion may end that.

Several tall construction cranes over a building site and rows of houses at sunset, with mountains behind, in Lehi, Utah.
The Numbers

America Now Spends More Building Data Centers Than Chip Plants. Most Other Private Building Is Shrinking.

Spending on data center construction reached a seasonally adjusted annual rate of $85 billion in August, the Census Bureau said, up 73 per cent in a year. Spending on computer, electronics and electrical factories, the category that includes chip plants, has fallen to $52 billion from $126 billion in mid-2024. Without data centers, private nonresidential construction is down about 6 per cent on a year ago.