Key facts
- Global data center spending is projected to reach $1 trillion in 2026 and $2.1 trillion by 2028.
- The market, worth $275 billion in 2022, could reach $2.93 trillion by 2030.
- AI is expected to drive a 37% market-wide CAGR from 2025 to 2030.
- Data center construction costs are estimated at $49 million per megawatt, with IT expenses comprising 78% of total spend.
- AI-focused data centers cost about $57 million per megawatt.
Global data center spending is expected to reach $1 trillion in 2026 and more than double to $2.1 trillion by 2028, driven by the growing demand for and development of AI services, BofA Global Research estimated on Friday. The data center market, valued at $275 billion in 2022, could reach $2.93 trillion by 2030. AI is seen as the primary driver for this expansion, fueling a projected 37% market-wide compound annual growth rate from 2025 to 2030. Chipmakers and server developers have been significant beneficiaries of this AI-driven buildout, particularly in the US. Data center construction costs are estimated at $49 million per megawatt, with IT-related expenses accounting for 78% of the total spend. AI-focused data centers, known as neoclouds, cost approximately $57 million per megawatt but require less space than traditional facilities. Servers are the costliest component at $31.4 million per megawatt, followed by networking at $4.8 million per megawatt, while other functions range from $100,000 to $1.1 million per megawatt.