Global Data-Center Investment Hits $61 Billion in 2025 amid AI Demand Surge
Global investment in data centers reached a new record of $61 billion in 2025, slightly up from $60.8 billion in 2024, according to S&P Global. This surge reflects a 'global construction frenzy' driven primarily by soaring demand for AI workloads.
The global footprint of data centers is expected to expand faster in the next five years than it did in the previous half decade, with the UK hosting about 500 data centers and the US around 4,000. Electricity demand for data centers is projected to grow to 945 terawatt-hours by 2030, which would approximately equal Japan's current total consumption.
Due to limited opportunities to acquire existing facilities, investors are increasingly financing new data center constructions to meet this demand. Deutsche Bank forecasts that OpenAI alone will spend about $143 billion from 2024 to 2029, which raises concerns about profitability and sustained losses within the sector.
Market apprehensions have also grown over overspending in the AI industry and the possibility of circular deals among major players like Oracle, Nvidia, and OpenAI. These concerns were reflected in a drop in Oracle's shares following their earnings report.
Meanwhile, local opposition to data centers persists, exemplified by a protest in Decatur, Georgia, against a planned facility.
