Global data center investment hits record $61bn
Analysts warn that unprecedented spending by AI firms, including OpenAI, raises concerns over long-term profitability despite potential for innovation.
Investment in data centres worldwide reached a record $61bn in 2025, according to a new report from S&P Global. The surge is being driven by growing demand for AI workloads, with construction and expansion showing little sign of slowing.
Analysts describe the market as a ‘global construction frenzy’ as companies race to meet rising hardware and energy requirements.
The report highlights that investors, unable to buy existing facilities, are increasingly turning to new builds. The sector, with 500 data centres in the UK and 4,000 in the US, is projected to expand faster over the next five years than the previous five.
The AI boom is pushing energy- and computer-intensive workloads to new extremes.
Concerns are emerging about potential overspending in the AI sector. Analysts note that companies like OpenAI, Oracle, and Nvidia are investing heavily despite uncertain returns.
OpenAI is expected to spend $143bn from 2024 to 2029, prompting concerns over profitability while still holding potential for major innovations. The rapid expansion of data centres also carries significant energy implications.
The International Energy Agency forecasts data centre electricity demand could more than double by 2030, matching Japan’s current total consumption and underscoring the scale needed for AI growth.
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