Global spending on data centers is set to exceed $1 trillion in 2026 and reach $2.1 trillion by 2028, according to Bank of America Global Research. The market, valued at $275 billion in 2022, is projected to grow to $2.93 trillion by 2030, driven by a 37% compound annual growth rate from 2025 to 2030.
The cost to develop data center capacity is estimated at $49 million per megawatt. IT equipment accounts for 78% of these expenses, with servers costing $31.4 million per megawatt and networking equipment adding $4.8 million per megawatt. Specialized AI-focused facilities, or neoclouds, require approximately $57 million per megawatt.
Industrial components such as electrical switchgear, generators, and cooling systems cost between $100,000 and $1.1 million per megawatt. These figures indicate that the infrastructure boom extends beyond chipmakers to include construction, engineering, and industrial manufacturing firms.
Despite the growth, the sector faces significant operational risks. Developers encounter difficulties in securing electricity, obtaining construction permits, and connecting facilities to grids. Furthermore, rising costs and local opposition could impact project timelines and overall financial viability.
