Industrial spending spikes in data centers and AI: Analysis

Global industrial investment surged by nearly one-third last year, driven largely by massive spending on artificial intelligence and data centres in the United States, while China experienced a steep decline, according to a new report released Monday.

Total investment in industrial projects rose 32 percent to $1.8 trillion in 2025, according to the annual Global Industrial Investment Monitor published by consulting firms Trendeo and McKinsey & Company, in collaboration with CESI engineering school.

The United States recorded a dramatic rebound in industrial investment, with funding nearly doubling from $404 billion in 2024 to $793 billion in 2025. The report noted that US investment has strengthened significantly since 2021 as the country adapts its industrial base toward high-growth sectors.

Initially focused on semiconductor manufacturing in 2021 and 2023, investment has increasingly shifted toward AI infrastructure and data centres. Spending in these segments has multiplied fivefold over the past two years, reflecting growing demand for advanced computing capacity.

In contrast, China witnessed a sharp contraction in industrial investment. Funding fell from $555 billion in 2022 to just $46 billion in 2025, marking a dramatic slowdown.

David Cousquer, chief executive of Trendeo, described the findings as a “geographical reshuffling of the deck” in global industrial investment.

“The United States is establishing itself as the undisputed leader,” Cousquer said in a statement accompanying the report. “China, on the other hand, affected by tariff-related factors, is seeing its share of received investment fall dramatically, with its status as the number two power shaken.”

The report underscores a significant shift in global industrial dynamics, as AI and digital infrastructure increasingly shape investment flows worldwide.