Hyperscaler AI-related capital expenditures (capex) are accelerating rapidly, growing from an estimated $235 billion in 2024 to a projected $700+ billion in 2026.
Jeff Johnston is lead digital infrastructure economist in CoBank’s Knowledge Exchange research division. He focuses on identifying emerging technologies, business models, risks and opportunities within the telecommunications industry, and providing strategic analyses to both internal and external stakeholders.
Prior to joining CoBank in 2018, Jeff was an equity analyst covering the tech, media and telecom sectors. He has also held various senior management positions in the telecommunications industry. Jeff earned his bachelor’s degree in business administration, accounting and finance from York University and he is also a CFA (Chartered Financial Analyst®) charterholder.
Latest report
Latest podcast
Latest video
Digital infrastructure reports
Why the AI capex cycle may just be beginning
Hyperscaler AI-related capital expenditures (capex) are accelerating rapidly, growing from an estimated $235 billion in 2024 to a projected $700+ billion in 2026.
AI’s capital supercycle means big spend, bigger returns
Capital expenditures on AI are exploding, and they are creating real shareholder value. The artificial intelligence spending cycle is not over. In fact, it may be accelerating based on feedback from the AI infrastructure ecosystem.
Too big to plug in? Data center and U.S. electricity issues to watch in 2026
CoBank experts Jeff Johnston and Teri Viswanath outline the details behind key issues they’re watching in 2026.
Boom or burden—or both? Navigating AI’s expansion into rural America
The capital rushing into the data center market to fuel the rise of artificial intelligence is nothing short of historic. Last year, the four hyperscalers—Meta, Microsoft, Amazon and Google—poured an estimated $235 billion into capital expenditures. This year, that figure is expected to exceed $400 billion.
Broadband M&A 2.0: Strategic discipline replaces pandemic euphoria
Broadband M&A activity has accelerated in 2025, driven by lower interest rates, improved economic certainty and renewed strategic interest.
The Quarterly: AI won’t eliminate need for college grads
Despite rising fears, artificial intelligence is unlikely to spark a jobs apocalypse for recent college graduates.
The Quarterly: Where have the workers gone?
Lower fertility rates, declining labor force participation, and lower net immigration are combining to squeeze labor supply. With the labor supply in rural America set to get tighter, technology – most obviously AI and robotics – will likely be at the core of any strategy to address the oncoming labor squeeze.
The bundle battle: Why rural broadband providers must pay attention to wireless
Bundling smartphone and home broadband services
The Quarterly: Historic shift in trade policy risks long-term loss of trust
CoBank’s Q1 2025 Quarterly report examines the economic forces shaping rural America, highlighting key shifts across agriculture, energy, communications, and financial markets as the year begins.
How co-ops can mitigate their risk from data center growth webinar summary
Mindful that many U.S. electric cooperatives have recently been approached to serve new data centers over the past six months
The co-location conundrum
Data centers are the foundation of a digital economy but powering them is this decade’s challenge.
The Year Ahead: Forces that will shape the U.S. rural economy in 2025
While the U.S. economy continues to outperform earlier expectations — delivering solid growth, low unemployment and moderating inflation — the rural economic outlook is less certain
Never miss an episode of All Day Digital
All Day Digital is a CoBank Knowledge Exchange audio program. We connect with communications executives and thought leaders to get their perspective on what’s shaping the industry.
All Day Digital podcast
Lenders are getting more creative in digital infrastructure
The rise of managed Wi-Fi in multi-family housing
NTCA’s new CEO fixes on ‘service’ in Universal Service Fund
How broadband providers can know it’s time to go mobile
Why wireless infrastructure sharing may be inevitable
What’s ahead for broadband and AI infrastructure in 2026
Digital infrastructure financing enters its high-stakes era
Open access, fixed wireless and fiber wars: Where broadband goes next
From Ma Bell to Meta, it’s time to rethink USF
Why rural towns are winning the data center boom
Are AI infrastructure investments sustainable?
How will BEAD 2.0 re-shape the rural broadband landscape?
ABS financing spurs data center builds
How BEAD-invested operators can stay nimble
What to know before planting your fiber flag
Data center energy use will spike in the next three years. Then what?
How nuclear energy could triple capacity by 2050
The rise of satellite Internet
What’s going on behind closed doors in the private broadband market
Why broadband providers should embrace BEAD, warts and all
Delayed rip and replace funding shrinks rural wireless coverage
The bridge across the digital divide needs maintenance
USF court ruling leaves rural telecom in limbo
How banks are embracing high-leverage broadband borrowers
Rural broadband operators on the front lines of national security
Why rural America is the training ground for AI
Leaving no stone unturned, Wisconsin ISPs explore all BEAD options
Why fixed wireless is where operators should focus
The data center surge rides on rural power
Rural broadband jeopardized by USF legal threats