The artificial intelligence revolution is rewriting the rules of the American economy, but rather than ushering in a golden age of consumer prosperity, it is sparking a massive, resource-heavy infrastructure boom that could leave the everyday worker behind.
According to a newly released strategic report from Morgan Stanley Wealth Management, the market has entered a “gen-AI-capex-powered” era that represents a rare shift away from consumption-led growth and toward an investment-led “reindustrialization renaissance.” The catch is it’s very unlike previous technological revolutions—such as the internet, personal computers, or mobile devices.
The current generative AI wave is “not obviously consumer-centric yet,” according to Lisa Shalett, chief investment officer for Morgan Stanley Wealth Management. Instead, the build-out is deeply rooted in the physical world to support massive computing needs.
Shalett’s team noted data-center-related investment already accounted for a staggering 25% of annual GDP growth in 2025, and is expanding at a pace that is multiples of forecasted real GDP growth. This immense scale requires trillions of dollars of investment that will ripple through physical markets, directly impacting real estate, construction, power and electricity generation, and industrial metals. The firm argues this dynamic is catalyzing a multiyear period in which “investment dominates consumption as the growth driver amid economic rebalancing.”
