AI data center spending is linked to a bigger US trade deficit

In short: The U.S. trade deficit is widening again, and analysts say a big reason is rising imports of hardware needed to build AI data centers.

What's going on

New U.S. trade figures show a sharp jump in the gap between what the country buys from abroad and what it sells. In May 2026, the U.S. goods and services trade deficit rose 42.2% to $77.6 billion, up from a revised $54.6 billion in April. Reporting tied much of the import increase to spending on AI infrastructure.

A key driver is the boom in data centers, which are large buildings filled with computers that run online services and AI systems (think of them like giant server warehouses). Building them requires a lot of imported equipment, including computers, semiconductors (the tiny parts that power electronics), and telecom gear.

The Federal Reserve Bank of Minneapolis said AI related imports have more than doubled since 2023, while non AI imports fell. Another Minneapolis linked analysis by economist Michael Waugh estimated that if AI related trade had grown like other trade, the 2025 U.S. goods trade deficit would have been about $194 billion smaller. His paper put the actual 2025 goods deficit at $1.235 trillion.

The New York Times also reported that imports of computers, accessories, and semiconductors topped $450 billion over the past year, up more than 60% since Trump took office. It said fast data center construction was a key reason. Some reporting adds that imports also include supporting gear like networking, cooling, and power equipment.

What to watch

If the U.S. keeps building data centers at a rapid pace, imports of this equipment could stay high, keeping pressure on the trade balance. It will also be worth watching whether more of this hardware gets made in the U.S. over time, which could reduce the need to import so much.

Source: NYTimes