Are tech companies still spending heavily on AI data centers despite the phantom demand issue?
Yes. In Q2 2026 earnings calls, Microsoft, Alphabet, and Meta reportedly shifted their language away from aggregate capital-expenditure totals toward time-to-energy, large-scale networking, power procurement, and converting infrastructure into revenue-generating compute — suggesting continued heavy spending but with more operational focus.
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Two-Thirds of AI Data Center Power Demand Is Phantom and Won't MaterializeBloomberg reports most electricity requested for US AI data centers will never be built — only about 28% of 1,066 gigawatts sought is likely to be committed.
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