AI Infrastructure Spending Projected to Grow Through 2030

The global buildout of artificial intelligence infrastructure is projected to expand through 2030, fueled by increasing token volume and the rise of agentic AI. Hardware remains the dominant cost center, with chips and IT equipment currently accounting for 75% to 80% of total data center expenditures.

Broadcom Inc is capitalizing on the surge in demand for custom silicon, projecting 350 billion dollars in shipments over the next two years. This growth occurs alongside supply chain pressures, as memory chip constraints have driven prices up by 15% to 20%.

While frontier players utilizing closed-model AI maintain significant pricing power, they face intensifying competition and escalating infrastructure requirements to sustain their operations.