Data center capex to hit $1.7 trillion by 2030 due to AI boom
AI boom drives massive data center capital expenditure, projected to reach $1.7 trillion by 2030, transforming global infrastructure.
The artificial intelligence (AI) boom is poised to drive an unprecedented surge in data center capital expenditure (capex), with global investments projected to reach an astonishing $1.7 trillion by 2030. This massive financial commitment is a direct consequence of the escalating demand for AI processing capabilities across various sectors. Key drivers include hyperscale operators significantly expanding their infrastructure to support large language models (LLMs) and other advanced AI applications, enterprises integrating AI into their core operations for automation and analytics, and the rapid growth of edge computing, which brings AI processing closer to data sources to reduce latency and improve efficiency.
A recent report by Synergy Research Group underscores that while a substantial portion of this spending will emanate from tech giants like Amazon, Google, Microsoft, and Meta, enterprises are also expected to contribute considerably as they accelerate their adoption of AI solutions. A critical factor escalating costs is the shift towards more powerful, AI-optimized hardware. This includes specialized components such as Graphics Processing Units (GPUs), Field-Programmable Gate Arrays (FPGAs), and custom AI accelerators, which are inherently more expensive than traditional Central Processing Units (CPUs) and demand sophisticated cooling systems and increased power consumption. This shift is not merely an upgrade but a fundamental re-architecture of data center design.
Beyond hardware, the demand for new, larger, and more energy-efficient data center facilities is escalating. Significant capital will be allocated to acquiring land, constructing advanced buildings, upgrading power grids, and implementing cutting-edge cooling technologies, including liquid cooling solutions. Challenges such as ensuring power availability, maintaining grid stability, and mitigating the environmental impact of these energy-intensive operations are becoming paramount concerns for investors and operators. Furthermore, the specialized talent required to design, build, and maintain these next-generation data centers will also contribute significantly to the overall expenditure. This trend signifies a foundational transformation of data center economics, repositioning AI as a primary economic engine reshaping the global digital infrastructure.