Goldman Sachs says the most capital-hungry investment cycle in history has arrived

Goldman Sachs is making a bold claim: the current investment cycle is the most capital-intensive in history, and the Federal Reserve is essentially a spectator. The bank is framing what it sees as an AI-driven “capex super cycle” that extends well beyond chips and chatbots into energy, infrastructure, and data centers. And if Goldman’s projections hold, the ripple effects will touch nearly every corner of the global economy through at least 2026, possibly stretching into 2028. The numbers behind the thesis Wall Street consensus estimates peg hyperscaler capital expenditure at $527 billion for 2026. That’s the baseline. Goldman sees potential upside pushing that figure to $700 billion or more. CEO David Solomon has been vocal about the breadth of this cycle. His argument is that the capital needs aren’t confined to the AI layer itself. Every data center needs power. Every power source needs infrastructure. Every piece of infrastructure needs financing. The demand cascades outward, pulling in industries that might seem disconnected from artificial intelligence at first glance. Goldman isn’t just observing this trend. The bank anticipates a surge in investment banking and capital mark...