Bank of America Sees Data Center Spending at $2.1 Trillion

Bank of America Global Research projects global data-center spending will reach $1 trillion in 2026 and more than double to $2.1 trillion by 2028, as demand for and development of artificial intelligence services drive investment in computing infrastructure. The forecast, outlined in a research note dated October 23, is an estimate rather than a confirmed spending total. Bank of America also valued the data-center market at $275 billion in 2022 and said it could reach $2.93 trillion by 2030. The firm projects a 37% compound annual growth rate from 2025 through 2030. The estimates include a broad range of construction and equipment costs. Bank of America put data-center construction at about $49 million per megawatt of capacity, with information technology expenses accounting for 78% of total spending. Servers were estimated at $31.4 million per megawatt, the largest component, while networking equipment was put at $4.8 million. For AI-focused data centers, sometimes called neoclouds, the estimated cost rises to about $57 million per megawatt. Bank of America said those facilities can require less space than conventional data centers. The firm also estimated that switchgear,...