(Corrects to add attribution in headline)
Oct 23 : Global data center spending is expected to hit $1 trillion in 2026 and more than double to $2.1 trillion by 2028, BofA Global Research estimated in a note on Friday, driven by growing demand for and development of AI services.
Data center spending has been a fast-growing source of revenue for industrial firms that make generators, construction equipment, switchgears and chillers.
Here are the details
Guess WordCrack the word, one row at a timeBuzzwordCreate words using the given lettersMini SudokuTiny puzzle, mighty brain teaserMini CrosswordSmall grid, big challengeWord SearchSpot as many words as you can Show More Show Less• The data center market, worth $275 billion in 2022, could reach $2.93 trillion by 2030, BofA said
• AI is seen driving the expansion, which the brokerage says will fuel a 37 per cent market-wide CAGR from 2025 to 2030, the brokerage said
• Chipmakers and server developers have been among the biggest beneficiaries of the AI-driven data center buildout, particularly in the US
• BofA put data center construction costs at $49 million per megawatt, with IT-related expenses making up 78 per cent of total spend
• Neoclouds, or AI-focused data centers, cost about $57 million per megawatt but benefit from lower space requirements than traditional counterparts
• The brokerage estimates servers are the costliest component at $31.4 million per megawatt, and networking the second-largest at $4.8 million per megawatt
• Most other functions – switchgear, power distribution, generators, backup power, chillers and cooling – cost between $100,000 to $1.1 million per megawatt