Data center spending to more than double to $2.1 trillion by 2028
XLK•Global data center spending is expected to reach $1 trillion in 2026 and more than double to $2.1 trillion by 2028, BofA Global Research estimated. The market could reach $2.93 trillion by 2030, with AI driving a projected 37% annual growth rate from 2025 to 2030.
1. Spending outlook
Global data center spending is expected to reach $1 trillion in 2026 and $2.1 trillion by 2028, BofA Global Research estimated in a note. The market, valued at $275 billion in 2022, could reach $2.93 trillion by 2030, with AI expected to drive a 37% market-wide compound annual growth rate from 2025 to 2030.
2. Buildout costs
BofA estimated data center construction costs at $49 million per megawatt, with IT-related expenses accounting for 78% of total spending. Servers are the costliest component at $31.4 million per megawatt, followed by networking at $4.8 million; most other functions cost between $100,000 and $1.1 million per megawatt.
3. AI-focused facilities
Neoclouds, or AI-focused data centers, cost about $57 million per megawatt but require less space than traditional data centers. Chipmakers and server developers have been among the biggest beneficiaries of the AI-driven buildout, particularly in the United States.
