From The Economic Times · · 1m 20s
US Data Centre Spending Doubles to $2.1 Trillion by 2028
BofA forecasts global data centre spending to surge from $1 trillion in 2026 to $2.1 trillion by 2028, driven by AI demand.
In brief
BofA forecasts global data centre spending to surge from $1 trillion in 2026 to $2.1 trillion by 2028, driven by AI demand. BofA Global Research estimates global data centre spending will exceed $2.1 trillion by 2028, more than doubling from 2026 levels, due to rising AI service adoption. Originally reported by The…
Data Centre Spending Surge
Global data centre spending is expected to reach $1 trillion in 2026 and more than double to $2.1 trillion by 2028, BofA Global Research estimated.
AI Drives Market Expansion
The data centre market, valued at $275 billion in 2022, could reach $2.93 trillion by 2030, with ai fueling a 37% compound annual growth rate from 2025 to 2030.
Server Costs Dominate Spending
Servers account for the largest share of costs at $31.4 million per megawatt, followed by networking at $4.8 million per megawatt.
Neoclouds Cost Less Space
Neoclouds, or ai focused data centres, cost about $57 million per megawatt but require less space than traditional facilities.
Total Construction Costs
BofA estimated data centre construction costs at $49 million per megawatt, with it related expenses accounting for 78% of total spending.
Other Functions Cost Less
Most other functions, including switchgear, power distribution, generators, backup power, chillers and cooling, cost between $100,000 and $1.1 million per megawatt.
The short version
BofA Global Research estimates global data centre spending will exceed $2.1 trillion by 2028, more than doubling from 2026 levels, due to rising AI service adoption.
