Global data center spending to hit $2.93T by 2030
What's the story
The global data center market is on a major growth trajectory, with spending projected to hit $1 trillion in 2026 and more than double to $2.1 trillion by 2028. The prediction comes from BofA Global Research, which cites the increasing demand for artificial intelligence (AI) services as a key driver of this expansion. The data center market was worth $275 billion in 2022 and could reach an astounding $2.93 trillion by 2030, according to BofA's estimates.
Growth catalyst
AI services driving data center growth
The rapid expansion of the data center market is expected to continue, with a compound annual growth rate (CAGR) of 37% from 2025 to 2030.
This growth is largely attributed to the rise of AI services.
Chipmakers and server developers have emerged as major beneficiaries of this AI-driven data center boom, especially in the United States.
Cost analysis
Neoclouds more expensive than traditional data centers
BofA estimates that the cost of constructing a data center is around $49 million per megawatt, with IT-related expenses accounting for 78% of total spending.
AI-focused data centers, or "neoclouds," are slightly more expensive at about $57 million per megawatt but require less space than their traditional counterparts.
Servers are the most expensive component at $31.4 million per megawatt, followed by networking at $4.8 million per megawatt.