For decades, Silicon Valley's business model was asset light. Industry growth was built on software products with minimal capex.

But AI has changed the playbook.

Data centers are consuming trillions in new investment, and debt is financing the surge.

The most important resource in the technology industry is compute.

Big Tech is racing to build data centers to handle exploding demand for AI products and services.

This means annual capex of the largest tech companies has tripled since 2024.

The surge in data center investment reflects a new reality: the physical assets that power AI, like land, electricity and chips, are critical business moats.