- AI data center spending is projected to account for more than half of all semiconductor revenue in the next four years, according to a report published by Gartner.
- The increase in data center spending is expected to propel global semiconductor revenue to more than $1.6 trillion this year, nearly doubling year over year.
- In July, the U.S. EPA exempted data center power plants from the Acid Rain Program, allowing companies greater flexibility in building AI facilities.
- Trump defended the AI data center buildout in a radio interview, stating that communities rejecting them are making a mistake because they bring jobs and tax revenue.
- Texas governor Greg Abbott ordered a pause on new data center projects due to concerns about their impact on the state's electrical grid.
- New York became the first state to implement a data center construction moratorium in July.
- Recently, Pennsylvania imposed new environmental requirements on AI projects.
- Memory revenue remains the primary contributor to overall semiconductor industry growth this year, estimated to account for 54% of 2026 semiconductor revenue.
AI data center spending is set to exceed 50% of semiconductor revenue by 2026, up from 36.5% in 2022. This surge is expected to propel global semiconductor revenue to over $1.6 trillion this year, nearly doubling from the previous year, according to Gartner.12
Ben Lee, a director analyst at Gartner, noted that while memory revenue remains the primary contributor to semiconductor growth, the rise in AI data center revenue indicates a shift in semiconductor value creation and evolving demand across the industry.8
In a recent radio interview, former President Trump defended data center construction, stating, “Frankly, communities that don’t take a data center, they’re making a mistake because there’s plenty of communities that want them.” He emphasized the economic benefits, including jobs and tax revenue for local towns and cities.
Trump also highlighted the innovative power sourcing efforts by AI companies, mentioning that they are building advanced power plants. OpenAI plans to invest $33 billion in a dedicated power plant for its Ohio campus, alongside an additional $4 billion for infrastructure.
However, not all regions are welcoming data centers. Texas Governor Greg Abbott recently criticized AI data center operators, stating they “basically dug their own grave” regarding backlash against their projects. Abbott had previously ordered a pause on new data center projects due to concerns over the reliability of Texas' electrical grid. Meanwhile, New York has implemented a construction moratorium, and Pennsylvania has introduced new environmental requirements for AI projects.567
“Memory revenue is expected to account for 54% of 2026 semiconductor revenue, per Gartner's Ben Lee. OpenAI's Ohio campus will draw from a $33 billion power plant, while Meta plans 10 gigawatts at its Louisiana cluster.”
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