BofA Sees Data-Centre Spending More Than Doubling to $2.1 Trillion by 2028

Brokerage links projected increase to AI demand

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 in a note reported by Reuters. The figures are forecasts, not reported totals.

The brokerage attributed the projected expansion to demand for and development of artificial-intelligence services. It estimated that the data-centre market, valued at $275 billion in 2022, could reach $2.93 trillion by 2030. BofA said the market could produce a 37% compound annual growth rate from 2025 through 2030.

The buildout has been a growing source of revenue for companies making generators, construction equipment, switchgear and cooling systems. Chipmakers and server developers have been among the main beneficiaries, particularly in the United States.

Servers account for the largest projected cost

BofA put construction costs for a data centre at about $49 million per megawatt, with information-technology expenses representing 78% of the total. AI-focused “neocloud” facilities were estimated to cost about $57 million per megawatt, although their space requirements are lower than those of traditional facilities.

Servers were estimated to be the most expensive component at $31.4 million per megawatt. Networking was the second-largest at $4.8 million per megawatt. Other categories, including switchgear, power distribution, generators, backup power, chillers and cooling, were each estimated at between $100,000 and $1.1 million per megawatt.

The estimates show the scale of capital that could be directed toward AI infrastructure, while leaving actual spending dependent on construction, power availability, equipment supply and demand for services.

Sources

https://www.reuters.com/business/data-center-spending-more-than-double-21-trillion-by-2028-2026-10-23/