BofA estimates global data center spending to hit $2.1 trillion by 2028

Oct 23, 2026

On October 23, 2026, BofA Global Research projected that global data center spending will reach $1 trillion in 2026 and $2.1 trillion by 2028, driven by artificial intelligence demand. The market, valued at $275 billion in 2022, is expected to reach $2.93 trillion by 2030 with a 37% annual growth rate. Construction costs average $49 million per megawatt, heavily favoring US chipmakers, server developers, and industrial equipment providers.

Global data center market growth projections

▪BofA Global Research projected that artificial intelligence demand will fuel a 37% compound annual growth rate in the data center market from 2025 to 2030
▪BofA Global Research estimated on October 23, 2026 that global data center spending, $275 billion in 2022, will reach $1 trillion in 2026, $2.1 trillion by 2028, and $2.93 trillion by 2030
▪BofA Global Research stated on October 23, 2026 that growing demand for and development of artificial intelligence services is driving global data center expansion

Data center construction and equipment costs

▪BofA Global Research reported that servers are the costliest component at $31.4 million per megawatt, followed by networking at $4.8 million per megawatt
▪BofA Global Research estimated that AI-focused neocloud data centers cost about $57 million per megawatt but require less physical space than traditional facilities
▪BofA Global Research estimated data center construction costs at $49 million per megawatt, with information technology expenses representing 78% of total spending
▪BofA Global Research estimated that non-IT data center functions, including switchgear, power distribution, generators, backup power, chillers, and cooling, cost between $100,000 and $1.1 million per megawatt

Industries benefiting from data center growth

▪BofA Global Research reported that data center spending has become a fast-growing revenue source for industrial manufacturers of generators, construction equipment, switchgears, and chillers
▪BofA Global Research identified United States chipmakers and server developers as major beneficiaries of the artificial intelligence-driven data center expansion