How AI Infrastructure is Rewriting the Economy (Week 40-2025)

Over the last fifty years, global economic strategy has been built on a simple postulate: concentrate people in urban centers, focus on services, create demand density and stimulate consumption through proximity.

This model of urbanization allowed the formation of megacities and global markets. Nevertheless, this had a hidden cost, making urban life increasingly expensive while reducing living spaces, ultimately making forming a family culturally and economically difficult.

Today we are on the threshold of a fundamentally different economic paradigm which emerges in in the United States, and this could ripple throughout the global system. Actually, the AI ​​infrastructure boom is not just another technology cycle; it represents the most significant overhaul of American economic geography since the Interstate Highway System..

As global capital spending on data centers skyrockets and tech giants like Google, Microsoft and Amazon forecast combined spending of more than $300 billion for 2025, we are witnessing the birth of an economy in which atoms serve up bits, rather than people focused on production.

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Discover the real forces behind decisions

The weekly newsletter is in keeping with the spirit of what it means to be a business engineer:

We always want to ask three fundamental questions:

1. What is the form of the underlying technology that connects the valuable accessory to its product?

2. What is the form of the underlying activity that connects the element of value to its distribution?

3. How can the company survive in the short term while adhering to its long-term vision through a transitional business model and market dynamics?

These non-linear analyzes aim to isolate the short-term hum and noise, identify the signal, and ensure that the short-term and long-term can be reconciled.