Data Centers Are Now the Main Engine of US Economic Growth, Fed Survey Finds

The Federal Reserve's Beige Book, a survey of regional economic conditions, found modest growth led specifically by data centers, according to the report. Separately, demand for data center capacity has doubled as frontier markets outside traditional hubs see rising activity, suggesting the buildout is spreading geographically rather than concentrating in a few cities. The scale of construction is also creating new business lines. Insurers are reportedly looking at data centers as a growing opportunity, underwriting risk on facilities that require specialized coverage for equipment, power infrastructure, and business interruption. What's unresolved is how durable this growth pillar is if AI spending plans from major tech companies slow. The Beige Book's finding that data centers are propping up otherwise modest growth means any pullback in that single sector could have outsized effects on regional economic readings.