U.S. Economy Sees Multi-Trillion Dollar Growth Fueled by Elder Care and Data Center Sectors

Economist Joe Weisenthal recently highlighted elder care and datacenters as the primary growth drivers for the U.S. economy. Speaking on the TBP Network podcast with hosts Jordi Hays and John Coogan, Weisenthal asserted, "Miraculously I had 15 minutes of working WiFi in Wyoming to chat with @jordihays and @johncoogan on @tbpn. Here I talked about how the growth drivers for the US right now are caring for old people, caring for old people, and datacenters." This perspective underscores significant economic shifts, with both sectors commanding multi-billion and multi-trillion dollar valuations and substantial investment.

The elder care sector is experiencing robust expansion, driven by a rapidly aging population and increasing life expectancy. The U.S. senior living market alone was valued at $923.20 billion in 2023 and is projected to reach $1.22 trillion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 4.16%. Globally, the elderly care services market is even larger, estimated at $1.02 trillion in 2023 and forecast to nearly double to $1.96 trillion by 2032, with a CAGR of 7.50%.

This demographic shift is profound; approximately 62 million Americans aged 65 and older were recorded in 2023, a number expected to rise to 84 million by 2054. The growing prevalence of chronic diseases among the elderly further fuels demand for comprehensive care services, including home care, institutional care, and adult day care. Technological advancements such as telehealth and remote monitoring are also playing a crucial role in expanding and modernizing care delivery.

Concurrently, the datacenter industry is emerging as a colossal economic engine, particularly propelled by the demands of artificial intelligence (AI) and cloud computing. The sector's contribution to the U.S. GDP more than doubled from $355 billion in 2017 to $727 billion in 2023, representing a 105% increase. Overall, datacenters contributed an estimated $3.46 trillion to the U.S. economy between 2017 and 2023.

Investment in datacenter infrastructure is projected to be immense, with global capital expenditures expected to reach $6.7 trillion by 2030, of which over $5 trillion will be dedicated to AI-related facilities. AI workloads are anticipated to account for 70% of datacenter demand by the end of the decade. This rapid growth also presents challenges, including significant strains on power supply, water resources, and labor, prompting innovation in areas like small modular reactors (SMRs) and advanced cooling technologies.