- Nvidia projects global AI infrastructure spending will reach up to $4T by 2030, driven by massive capital outlays from tech giants like Microsoft and Amazon.
- Despite slower quarter-over-quarter growth, data center sales hit $41.1B, making up 88% of Nvidia’s $46.7B Q2 revenue.
- Nvidia is investing heavily in US real estate, including 1.1M SF of AI supercomputing space in Texas, and has spent over $836M in Silicon Valley for expansion.
Infrastructure Boom Incoming
Nvidia CEO Jensen Huang said the industry is in the early stages of a global AI infrastructure build-out. He predicts capital investments will reach between $3T and $4T by the end of the decade, reports CoStar. Data center demand from companies like Amazon and Microsoft alone is expected to drive $600B in spending this year.
Nvidia posted strong second-quarter revenue of $46.7B. However, it marked the company’s slowest growth since 2023. The results reflect a cooling pace compared to earlier AI-driven surges.
Real Estate And Power Bottlenecks
Power and water limitations are emerging as key barriers to continued growth in AI-related real estate development. These challenges are drawing greater scrutiny as demand for physical infrastructure, particularly data centers, continues to soar.
Nvidia is responding by aggressively expanding its real estate footprint. The firm is building AI supercomputing facilities in North Texas with Taiwan-based Wistron. The project will total 1.1M SF. Nvidia is also doubling its presence in Austin by leasing 100K SF of new space in the city’s growing tech district.
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Silicon Valley Spending Spree
Since 2023, Nvidia has spent more than $836M acquiring real estate near its Santa Clara headquarters. Key deals include:
- The $375M purchase of its HQ campus in early 2024 (seven buildings, 626,500 SF)
- A $123M acquisition of a nearby 10-building R&D campus (250K+ SF)
- Existing developments like the 1.2M SF Endeavor and Voyager offices (built between 2018–2022)
The company’s continued expansion is fueling optimism among CRE professionals that other tech firms may follow suit, potentially reviving the struggling office market.
Why It Matters
Nvidia’s bullish outlook on AI infrastructure spending suggests long-term tailwinds for several industries. Data center developers, power providers, and CRE markets that support the tech sector are all likely to benefit. With branded chipmakers investing billions into US facilities, real estate tied to AI may be among the fastest-growing asset classes heading into 2030.
What’s Next
Nvidia plans to invest $500B over the next four years to build AI supercomputers exclusively in the US. Meanwhile, macro and geopolitical risks—from Trump’s proposed 100% chip tax to supply constraints and rising competition—could affect growth trajectories for both Nvidia and the broader AI real estate ecosystem.
