In the second quarter, US corporate spending on data centers and information processing hardware reached $752 billion, surpassing residential housing investment of $748 billion for the first time, according to the Bureau of Economic Analysis. Inflation-adjusted spending on information processing equipment rose 51% from five years ago, while fixed investment in residential housing fell 18% from its peak in early 2021, with the two curves crossing in the second quarter of 2026. Adam Shapiro, vice president at the Federal Reserve Bank of San Francisco, said the investment focus is shifting from housing to computers, noting AI investment is less sensitive to interest rates than residential investment. Capital expenditures from Alphabet, Amazon, Microsoft, Meta, Oracle, and SpaceX totaled approximately $470 billion in 2025, are projected to climb to $870 billion in 2026, and surpass $1.3 trillion in 2027, though operating cash flow is expected to turn negative in 2026–2027, with S&P Global viewing 2028 as a critical inflection point. The housing market remains frozen amid elevated mortgage rates, with housing starts continuing to decline, while 64% of voters say they are unlikely to support a candidate who favors building data centers in their community.