AI demand ignites $61 billion data center surge

Global data center investment hit US$61 billion in 2025, driven by surging AI workloads that demand dense compute, advanced chips, and reliable power. The total spans mergers, acquisitions, and spending on new builds and upgrades across major markets, marking the sector’s strongest year yet. Hyperscalers including Microsoft, Amazon, and Google push expansion while tapping bond markets and private equity, shifting from cash-only funding. More than 100 deals show broad participation. McKinsey projects AI-related data center spending could reach US$7 trillion by 2030. Virginia and Texas lead in the United States, with Europe and parts of Asia drawing capital for low‑latency services. Power constraints loom, prompting grid strategies, long‑term contracts, and on‑site generation. Developers pursue renewables, nuclear, and advanced cooling amid ROI and community concerns.