Data centers have become one of the most visible symbols of the global AI investment boom. But turning ambitious plans into operational capacity will depend on far more than demand for computing power.
In this episode of The Decisive, host Kristen Hallam speaks with three S&P Global Market Intelligence experts about the economic, construction, policy and security risks shaping the expansion of AI infrastructure.
Jeannine Cataldi, associate director for Construction, examines the practical constraints facing data center projects, including access to power, water, land, critical materials and skilled labor. She explains how rising costs, regulatory scrutiny and community opposition could redirect investment from established hubs toward secondary markets with more predictable development pathways.
Bibianna Norek, principal analyst for Europe/CIS Country Risk, explores Europe's efforts to balance AI investment with regulation, sustainability requirements and local planning rules. She also discusses the growing importance of social license and the physical security risks facing data centers as they become increasingly important pieces of critical infrastructure.
Ben Herzon, co-head of U.S. Economics, assesses the AI investment cycle's contribution to US economic growth. Although AI remains a relatively small part of the overall economy, its rapid expansion has become a significant driver of business investment—and a potential source of broader market risk if expectations about future profitability are revised.
Listen to learn:
- How infrastructure constraints may shift investment into new regions and secondary markets
- How community opposition and geopolitical tensions are changing the security environment
- Why a reassessment of AI company valuations could matter more to the US economy than a slowdown in construction
