BofA Expects Global Data Center Spending to Hit USD 2.1 Tn
BofA expects global data center spending to hit $1 trillion in 2026 and $2.1 trillion by 2028, driven by AI.
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Global data center spending is expected to reach USD1 trillion in 2026 and more than double to USD 2.1 trillion by 2028, BofA Global Research estimated in a note on October 23, driven by growing demand for and development of AI services.
The market was worth USD 275 billion in 2022 and could reach USD2.93 trillion by 2030, BofA said, with AI fuelling a 37% market-wide compound annual growth rate from 2025 to 2030. Chipmakers and server developers have been among the biggest beneficiaries, particularly in the US. Data center spending has also become a fast-growing revenue source for industrial firms that make generators, construction equipment, switchgear and chillers.
BofA puts data center construction costs at USD 49 million per megawatt, with IT-related expenses making up 78% of total spend. Servers are the costliest component at USD 31.4 million per megawatt, followed by networking at USD 4.8 million.
Most other functions, including switchgear, power distribution, generators, backup power, chillers and cooling, cost between USD 100,000 and USD 1.1 million per megawatt. AI-focused data centers, or neoclouds, cost about USD 57 million per megawatt but need less space than traditional facilities.
Global data center spending is expected to reach USD1 trillion in 2026 and more than double to USD 2.1 trillion by 2028, BofA Global Research estimated in a note on October 23, driven by growing demand for and development of AI services.
The market was worth USD 275 billion in 2022 and could reach USD2.93 trillion by 2030, BofA said, with AI fuelling a 37% market-wide compound annual growth rate from 2025 to 2030. Chipmakers and server developers have been among the biggest beneficiaries, particularly in the US. Data center spending has also become a fast-growing revenue source for industrial firms that make generators, construction equipment, switchgear and chillers.
BofA puts data center construction costs at USD 49 million per megawatt, with IT-related expenses making up 78% of total spend. Servers are the costliest component at USD 31.4 million per megawatt, followed by networking at USD 4.8 million.
Most other functions, including switchgear, power distribution, generators, backup power, chillers and cooling, cost between USD 100,000 and USD 1.1 million per megawatt. AI-focused data centers, or neoclouds, cost about USD 57 million per megawatt but need less space than traditional facilities.
