Data center deals hit $61 billion record as AI boom fuels infrastructure spending frenzy

$61 billion went to data center deals in 2025, report finds

Billions are going to data centers as communities try to stop the spread. Credit: Ron Jenkins / Getty Images News via Getty Images The data center market is booming with little indication it'll be slowing down anytime soon -- despite efforts to halt the processing sprawl. According to a new report by S&P Global, the global data center market ballooned to $61 billion in 2025, a half billion dollar increase from last year and another record high for the industry. The money is trying to keep pace with expanding infrastructure projects needed to funnel more data processing power to generative AI and its makers. Despite concerns that interest in AI will wane and render projects moot, S&P experts told CNBC that they predict demand for AI applications will stay strong in 2026, and skepticism of major AI players is unlikely to change the market trends. Still, the numbers may not be as positive as they appear. S&P Global found that a majority of the financing surge came from private equity financing, a precarious debt model that's needed to feed the massive, energy-intensive industry, CNBC reported. According to an October S&P Global report, data centers were expected to increase their power grid use by another 22 percent by the end of 2025, and predict that number will triple by 2030. Other experts have spotted similar trends. In response to these trends, communities around the country have been pushing back against data center deals. Earlier this month, a coalition of 350 nonprofit environmental organizations signed a letter outlining major concerns about the environmental impact of large data centers, urging all 50 states to halt the expansion of data center projects. Over the last year, data center deals have faced legal and social blowback from community groups and local advocacy organizations, including cases in Virginia and Wisconsin. Advocates have even created litigation tool kits to support the fight against AI data center expansion. Meanwhile, the Trump administration has pledged to accelerate federal data center permitting and bypass established environmental laws in order to meet goals outlined in its new AI action plan.

Investment in data centers worldwide hit record $61bn in 2025, report finds

Analysts see 'global construction frenzy that shows no signs of slowing' amid surge in demand from AI boom A new report finds that investment in the worldwide data center market reached $61bn this year, setting a new record atop the wave of the artificial intelligence boom. The analysis by S&P Global, first reported by CNBC, documented what the market intelligence firm called a "global construction frenzy that shows no signs of slowing", to build out the massive real estate, hardware, and energy requirements driven by insatiable demand from AI companies. S&P pegged 2024's investment in the data center market at $60.8bn, just below the 2025 number. "Unable to buy, many investors are turning to new builds," wrote Iuri Struta, an analyst for S&P Global. There are approximately 500 data centers in the United Kingdom, compared with about 4,000 in the United States, according to Data Center Map, which tracks the facilities globally. Struta, the S&P Global analyst, said he does not see the demand for data centers slowing. "The global data center footprint is projected to expand at a faster rate over the next five years than it did in the previous five, spurred by demand for energy- and computer-intensive AI workloads," said Struta. S&P Global's report comes at a time when some investors worry that the entire artificial intelligence sector may be in the midst of huge overspending for unproven ongoing returns. Last week, Oracle's shares dropped 11% after it reported lower quarterly earnings than analysts had expected, which in turn dragged the stock prices on some other major companies in AI. Some companies such as Oracle, along with Nvidia and OpenAI, have been criticized recently for making deals with one another that seem circular to many investors. Earlier this year, the International Energy Agency noted in a lengthy report that, globally, "electricity demand for data centres more than doubles by 2030", reaching 945 terawatt hours (TWh), or just more than "Japan's total electricity consumption today". This month, a trio of analysts from Deutsche Bank put out a staggering chart indicating that OpenAI alone will burn through $143bn between 2024 and 2029, the year before the company claims it will turn a profit. That chart shows how much more the ChatGPT maker, seen as a bellwether of the AI industry, plans to spend relative to other tech giants of the last two decades, including Amazon, Tesla and Uber, reached profitability. "Of course, OpenAI may continue to attract significant funding and could ultimately develop products that generate substantial profits and revolutionise the world," Jim Reid, managing director, global head of macro research and thematic strategy at Deutsche Bank, wrote. "But at present, no startup in history has operated with losses on anything approaching this scale. We are firmly in uncharted territory."

AI boom drives 100 data-centre dealmaking to record $61 billion: Report

Data centre deals have hit a new record this year, surpassing previous highs. This surge is fueled by the massive demand for computing power needed for artificial intelligence. Tech giants are investing billions to expand their infrastructure. Financial sponsors are actively seeking these assets, but high-quality properties are scarce. Global data-centre dealmaking surged to a record high through November this year, driven by an insatiable demand ⁠for computing infrastructure to meet the boom in artificial intelligence usage. Data from S&P Global Market Intelligence showed that there were more than 100 data centre transactions during the period, with the total value sitting just under $61 billion. Why it's important Interest in data centres has swelled this year as tech giants and AI hyperscalers have planned billions of dollars in spending to scale up infrastructure. AI-related companies have powered much of the gains in U.S. stocks this year, but concerns over lofty valuations and debt-fueled spending have also sparked worries over how quickly corporates can turn the investments into profits. By the numbers Including M&As, asset sales and equity investments, data investments hit nearly $61 billion through the end of November, already surpassing 2024's record high $60.81 billion. Since 2019, data centre dealmaking in the U.S. and Canada totaled about $160 billion, with Asia-Pacific reaching nearly $40 billion and Europe $24.2 billion. "High interest ⁠comes from financial sponsors, which are attracted by the risk/reward profile of such assets. Private equity firms are eager buyers but are generally reluctant sellers, creating an environment where availability for sale of high-quality data centre assets is scarce," said Iuri Struta, TMT analyst at S&P Global Market Intelligence.

AI boom drives data-centre dealmaking to record high, says report

Global data-centre dealmaking surged to a record high through November this year, driven by an insatiable demand for computing infrastructure to meet the boom in artificial intelligence usage. Data from S&P Global Market Intelligence showed that there were more than 100 data centre transactions during the period, with the total value sitting just under US$61 billion. Interest in data centres has swelled this year as tech giants and AI hyperscalers have planned billions of dollars in spending to scale up infrastructure. AI-related companies have powered much of the gains in U.S. stocks this year, but concerns over lofty valuations and debt-fueled spending have also sparked worries over how quickly corporates can turn the investments into profits. Including M&As, asset sales and equity investments, data centre investments hit nearly $61 billion through the end of November, already surpassing 2024's record high $60.81 billion. Since 2019, data centre dealmaking in the U.S. and Canada totaled about $160 billion, with Asia-Pacific reaching nearly $40 billion and Europe $24.2 billion.