Capital spending on AI by five major technology firms has crossed $400 billion, overtaking what the world invests each year in oil and natural gas production.
Tech Capex Overtakes Oil and Gas
The shift was flagged by the International Energy Agency in its latest report.
Combined capital expenditure at the five firms topped $400 billion in 2025. The agency expects another 75% jump in 2026.
The numbers reflect a sharp pivot in global capital flows. Data centre development has grown too capital-intensive for corporate balance sheets alone, pulling tech firms deeper into bond markets to fund the buildout.
AI-related debt has now climbed to roughly $1.4 trillion, the largest segment within US investment-grade credit.
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IEA Flags Demand and Energy Risks
Major AI model providers reported a threefold jump in active users and a fivefold rise in revenue over the past year, the IEA said.
Electricity demand from data centres climbed 17% in 2025, with AI-focused sites growing faster still. The agency now expects data centre power use to roughly double by 2030.
Pace will hinge on market sentiment. Investor expectations on AI returns, alongside macroeconomic and financing conditions, will shape how fast the sector scales from here.
The IEA's earlier April 2025 study had already noted that electricity sector investment hit $1.5 trillion in 2025, about 50% above combined spending on oil, gas, and coal supply, marking what it called the onset of an "Age of Electricity."
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