Silicon Valley Has Lost Its Biggest Advantage

AI firms and Big Tech are pouring unprecedented money into data centers, power systems, and cooling as the AI boom turns infrastructure into a core competitive battleground.

Caterpillar is benefiting from the surge because its gas-powered engines are helping provide electricity for these facilities.

The report argues that AI success now depends on physical infrastructure and energy as much as software.

Projected spending is expected to outstrip operating cash flow, pushing major tech companies toward new borrowing and heavier debt loads.