Yesterday, PwC came out with their long-run global AI data center spend report. My take is that their estimates dramatically understate the staying power of data center (aka the brain of AI) growth.

To put it in perspective, data center spend is still growing about 70%+ in the near term. PwC estimates annual growth between 2030 and 2050 will average 2.5%. That number feels too low. My best guess is that it probably approaches between 5–10% per year, as supported by PwC’s upside scenario of 6.5%. Those rates may look close on paper (2.5% vs. my midpoint of 7.5%), but they are not. Compounded over 20 years, 10% growth leaves annual spend about 4× what PwC’s midpoint is and about 2× their upside.

Our Deepwater Frontier Tech ETF, $LOUP, is investing in some of these data center infrastructure companies that will aim to ride the growth of AI for decades.

Source: Gene Munster